Guide to business in Spain Guía de negocios en España

INVEST IN SPAIN

6. Domestic market


6. DOMESTIC MARKET

Growth in the Spanish economy in recent times has been driven by a sharp increase in demand and a substantial expansion of production in the current context of globalization of the economy.

Today Spain has a domestic market of 46.8 million people with a per capita income in 2013 of € 22,279 according to data from the National Statistics Institute, with additional demand coming from the record 65 million tourists who visited Spain in 2014[13], making Spain in the third most visited country worldwide. Links with Latin America and North Africa and the obvious advantages of using Spain as a gateway to those countries are significant factors.

Table 6 reflects the growth of production and demand components in the last year. The increased rate of growth of the Spanish economy has been mainly due to the consolidation of domestic demand offset by the drop in net foreign demand. The foreign demand trend stems from a slight drop in exports and from import growth bolstered by the strength of domestic demand.

Table 6

GROWTH OF PRODUCTION AND DEMAND COMPONENTS (Percentages)

Production components

2013

2014[*]

Agriculture and fishery

15.6

8.4

Industry

-1.8

0.9

Construction

-8.1

-0.4

Services

-1.0

1.6

Demand components

2013

2014

Private consumption

-2.3

2.7

Public consumption

-2.9

0.9

Gross fixed capital formation

-3.8

3.1

Domestic demand

-2.7

2.6

Exports of goods and services

4.3

4.6

Imports of goods and services

-0.5

8.2

Source: Bank of Spain.

[*] Data up to third quarter of 2014.

Guide to business in Spain

Spain: an attractive profile

16

ICEX - Gobierno de España - Ministerio de Economía y competitividad
Elaborado por Garrigues - Abogados y Asesores Tributarios
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