1.1.The Spanish market
Spain is a major industrialized democracy, ranking as the tenth largest economy in the world in 1990. Spain has a population of 39 million, with 14.6 million persons in the active work force. The gross domestic product (GDP) per capita was $12,502 in 1990, a 28 percent jump over 1989's per capita GDP. Agriculture accounts for 5 percent of GDP and employs 14 percent of the working population. Tourism is the major source of services revenue, contributing $18.6 billion to the balance of payments in 1990.
With 197,000 square miles, Spain accounts for one-fifth of the land mass of Western Europe. Its principal industries are textiles and apparel (including footwear), food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, and machine tools. Its natural resources include coal, lignite, iron ore, uranium, mercury, pyrites, fluorspar, gypsum, zinc, lead, tungsten, copper, kaolin, potash, and available in the Background Note series of reports prepared by the U.S. Department of State. They can be obtained at the U.S. Government Printing Office (GPO).
1.2.Spain’s economic outlook
Since joining the European Community (EC) in 1986, Spain has worked to make its economy more open, efficient, and competitive. Most quantitative restrictions have been removed, and foreign investment has been encouraged in an effort to modernize Spain's industrial base in preparation for the Single Market. Since 1986, the Spanish economy has enjoyed strong, investment led growth. Real increases in GDP averaged 4.8 percent during 1986-89, making Spain's economy the fastest growing in the EC. The economy grew 3.7 percent in 1990, and official stimates project GDP growth of 2.9 percent for 1991. The greatest growth in foreign direct investment has been from other EC members. However, other important trade partners, including Japan and the United States, have gained a strong foothold in Spain. More detailed information on current economic developments in Spain and an analysis of their implications for American business interests may be obtained by ordering the most recent Foreign Economic Trends Report from GPO or the nearest District Office of the Department of Commerce. …
