THE SPANISH ECONOMY

Spain economy resulted pretty dynamic on adapting to market demands to keep in growth for the last years. A renovated growth in the Industry could complement threatens in Construction activity, which may decrease as consequence of increasing rates of mortgages interest.

More flexible work labour structure as compared to other EU countries, together with new Latin-American and North African immigration force, seemed to place Spain in relatively better competitive position and demographic basis.

Nevertheless, looking at export-imports by manufacturing sectors, only cars show balanced figures, being the imports higher in the rest of main sectors. But again Automotive industry established in Spain is indeed foreign origin, therefore of significant risk of delocalisation.

Only vegetables and building materials, which rank below top 10 foreign exchange sectors, show more exports than imports.

Traditionally industry and technology has been balanced by tourism incoming, but the competition from emerging countries with attractive destinations, are putting pressure on Spanish offer.

In conclusion, the key challenge of the country to consolidate its position internationally, are the efforts to be done in the next years on promoting innovation at all levels of economy sectors.

Source: INE and own data