2. The ‘Highs’ and ‘Lows’ of the Spanish
Economy
Accession to the EU
Population and migration
Employment
Tourism
Energy resources
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4. High-income country (US$ 30475, PPP 2008)
High Human Development Level (0.863, #20)
• Especially high in Health (0.970)
• Life-expectancy at birth = 81.3 years
Universal Social Security system
Tourism attraction (2nd Internat. destination)
Green technologies
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5. High unemployment (> 20%)
Lower competitiveness
External deficit
Weak Research & Development
Low entrepreneurship
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7. Application in 1977
Accession in 1986
Change of reference framework
Single Market implementation
Project for a single currency
Launch of the Euro (1999)
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8. European Funds paid to Spain (1986-2006): 1,8% GDP
A) EAGGF-Guarantee and others (45% of total)
B) Structural Funds (55% of total)
1. ERDF (50% of structural funds)
2. ESF (22%)
3. EAGGF-Guidance & Fisheries (15%)
4. Cohesion Fund (13%)
Net balance between Spain & EU (1996-2996): 1% GDP
Estimated effect of European Funds on Spanish growth and income
Without funds With funds
Annual growth of GDP 1988-2006 2,37% 2,75%
GDP per capita 2006 (EU-15=100) 83,61% 89,39%
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9. NET BALANCE BETWEEN SPAIN AND EU
(1996-2006):
1% of GDP
NET BALANCE BETWEEN SPAIN AND EU
(2007-2013):
0,2 % of GDP
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12. Low population growth since early 1980s
Ageing of the population
Duality in the labour market
• High unemployment
• Positions not covered
Immigration growing very quickly
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13. Population in Spain (2010) = 47.150.819 (93,4 inhab./Km2)
Large internal differences
EU-15 EU-25 EU-27
(2007)
120.9 117.3 114.8
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14. Older
Increased
labour Problems of
force expenditure
Population
ageing
Stagnated
Increased
Demand
dependency
Economic effects
•Supply: less flexibility
•Demand: Slower growth + increased expenditure
•Welfare state: increased dependency
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15. Foreign population in Spain
The opening of borders to an Year persons % total
1981 198 042 0.5%
integrated immigration has the
1986 241 971 0.6%
following benefits: 1991 360 655 0.9%
1996 542 314 1.4%
1. Increased birth rates 1998 637 085 1.6%
2000 923 879 2.3%
2. Pensions are guaranteed
2001 1 370 657 3.3%
3. Positions not-wanted by 2002 1 977 946 4.7%
2003 2 664 168 6.2%
Spanish workers may be 2004 3 034 326 7.0%
occupied 2005 3 730 610 8.5%
2006 4 144 166 9.3%
4. Increase in consumption and 2007 4 519 554 10.0%
trade and, therefore, general 2008 5 220 600 11.3%
economic growth 2009 5 598 691 12.0%
2010 5 747 734 12.2%
2011 5 730 667
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17. Increased participation of women
Growth in tertiary sector employment
Duality (permanent vs. fix-termed contracts)
Low productivity
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18. Activity rate by gender
(% of population over 16)
80
70
60
50
40
30
20
10
0
1977 1980 1985 1990 1995 1999 2007 2010
Total 50,3 48,7 47,5 49,4 49,0 50,2 58,9 60,0
Male 75,2 72,1 67,3 66,7 62,7 63,1 69,3 68,1
Female 27,5 27,1 27,8 33,4 36,2 38,4 48,9 52,3
Source: EPA
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24. Several different activities included
Approximation by Hostelry (% of total economy):
• Direct Effect: > 7% of GDP and employment
• Total Effect (direct + indirect): > 10% of GDP and
employment
Contribution to the Balance of Payments
• Surplus in tourism activities
• Partly compensates the trade deficit
• From a low of 33% to a high of 150%
• 2010: 59% of the trade deficit
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32. Universities and research centres:
• Generation and transfer of knowledge
State:
• Incentives, regulation
Businesses
• Application (+ self-generation)
Lack of connection
• Triple helix model lacks efficiency
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