• GDP: US$1.1 trillion (2005).
• Main imports: Machinery and equipment, fuels, chemicals, semi-finished goods, food, consumer goods, measuring and medical control instruments.
• Main exports: Machinery, motor vehicles, food, pharmaceuticals, medicines and other consumer goods.
• Main trade partners: Germany, Italy, Japan, The Netherlands, Portugal, UK and USA.

Until 1975, under the Franco regime, the Spanish economy developed almost in isolation, protected from foreign competition by tight import controls and high tariffs, and gradually evolved from an essentially agrarian economy to an industrial one. Spain joined the (then) European Community in 1986. The transition, which was expected to be very difficult, passed off remarkably well and the Spanish economy now ranks eighth in the world by output.

Despite the decline of many of its traditional industries, such as shipbuilding, steel and textiles, Spain achieved the highest average growth rate in the Community during the 1980s and a steady performance throughout the 1990s. This was largely due to the growth of its service sector, which now accounts for two-thirds of economic output.

The only significant legacy of structural weaknesses in the Spanish economy which has not been fully tackled is unemployment, which remained stubbornly high at 11% of the workforce in 2004. However, other economic indicators, such as interest rates and budget deficit, are within the limits that allowed Spain to join the European Monetary Union at the start of 1999.

In common with most of its EU partners, the Spanish economy has slowed somewhat since 2000. The annual GDP growth in 2005 was 3.4%.

The agricultural sector produces cereals, vegetables, citrus fruit, olive oil and wine. The processed foods industry has also expanded rapidly. The fishing fleet, although reduced from its peak of a few decades ago, remains one of the world’s largest. The relative importance of the agriculture, forestry and fisheries sectors has declined over the last decade and now accounts for less than 4% of GDP.

Energy requirements are met by indigenous coal and natural gas, imported oil (mostly
from north Africa), and a sizeable nuclear power programme. In the manufacturing sector, the decline of older industries has been offset by rapid expansion in chemicals, electronics, information technology and industrial design. Spain has also become an important producer of motor vehicles; this industry alone accounts for 5% of GDP and 80% of all output is exported.

In the service sector, Spain has a vast tourism industry mainly servicing visitors from northern Europe: in 2002, this brought an estimated US$40 billion (about 7% of GDP) into the economy. Financial services, transport, media and telecommunications have also undergone substantial growth.

Businesspeople are generally expected to dress smartly. Although English is spoken, an interest in Spanish and an effort on the part of the visitor to speak even a few words will be appreciated. Business cards are exchanged frequently as a matter of courtesy and appointments should be made. Punctuality is important.

Office hours: Tend to vary considerably. Businesspeople are advised to check before making calls.

Consejo Superior de Cámaras de Comercio
Industria y Navegación de España, C/Ribera del Loira 12, 28042 Madrid, Spain
Tel: (90) 210 0096.
Website: www.camaras.org

Spain Convention Bureau (FEMP)
Calle Nuncio 8, 28005 Madrid, Spain
Tel: (91) 364 3700.
Website: www.femp.es

Oficina de Congresos de Madrid (Information on Conferences/Conventions)
Calle Mayor 69, 28013 Madrid, Spain
Tel: (91) 588 2900.
Website: www.munimadrid.es/congresos

Instituo Español de Comercio Exterior (ICEX) in the UK 
2nd Floor, 66 Chiltern Street, London W1U 4LS, UK
Tel: (020) 7467 2330.
Website: www.mcx.es/londres

Most large towns have dedicated convention centres in addition to the facilities provided by hotels. Seating capacity ranges from 540 in Jaca to 4,200 in Palma de Mallorca; Madrid can seat up to 2,650 persons.