Analysis of Spain’s Economic Sectors and Development
Energy
Spain’s energy production is insufficient, necessitating imports of 4/5 of its energy needs, primarily oil and gas (70%). Coal production has decreased due to economic factors, while hydraulic and nuclear energy remain stagnant. The distribution network, maintained by Red Eléctrica de España, comprises 33,669 km of high-voltage lines and 3,000 substations, with imports from France, Portugal, Morocco, and Andorra. Natural gas is supplied by Morocco, Algeria, France, and Portugal. LNG terminals in Barcelona, Huelva, and Cartagena support storage and distribution. The energy market has been liberalized since 1992, with Cepsa and Repsol being the major players. Increased energy consumption has led to higher import costs and dependence, raising environmental and geopolitical concerns. The government has implemented energy planning initiatives to reduce dependence, increase gas and hydropower usage, and promote renewable energy. The goal is to reduce CO2 emissions by 10% between 2008 and 2011, in line with the Kyoto Protocol.
Tertiary Sector
The tertiary sector, encompassing services like commerce, transportation, finance, education, health, and tourism, has expanded significantly since 1970, particularly in Catalonia, the Balearic Islands, Valencia, and Andalusia.
Transportation
Road transport faces congestion in metropolitan areas. Rail transport is the second most important mode, with 90% of the network managed by ADIF. Spain’s rail network is less extensive than the EU average, requiring improvements in local and high-speed rail. Maritime transport plays a key role in long-distance trade, with increased container traffic in Valencia and Barcelona. Passenger transport is also growing. Air transport, primarily passenger airlines, has experienced growth, notably in Girona (34% in 2007). Major airports include Barajas, El Prat, and Palma de Mallorca.
Other Tertiary Activities
Commercial activity has shifted towards larger areas like Madrid, Barcelona, Valencia, Seville, and Alicante, with smaller shops losing importance. The financial sector has undergone transformation due to the euro and globalization, leading to company mergers. Key players include Grupo Santander, Grupo Bilbao Vizcaya Argentaria, and savings banks in Barcelona, Catalonia, and Madrid. Basic social services, while not directly contributing to productivity, are crucial for development. Educational services are primarily public (70%), with 25% subsidized and 5% private. Healthcare resources include 3.26 hospital beds and 3.4 doctors per 1,000 inhabitants.
Tourism
Tourism is a major economic driver, encompassing restaurants, hotels, campsites, travel agencies, shops, and museums. Spain is the second most popular tourist destination globally, with key locations in the Balearic Islands, Catalonia, and Andalusia. Foreign tourism accounts for two-thirds of the total, mainly from Germany, France, and the UK. Environmental impact, resource management, and road infrastructure are key challenges.
Primary Sector
The primary sector is characterized by a decrease in dryland farming, an increase in irrigated agriculture and forest area (due to reduced grazing land and urban growth), and a decline in livestock, forestry, and fishing, coupled with an aging population. Spain’s Mediterranean climate (300-600mm rainfall) favors rainfed crops (79%) over irrigated crops (21%). Rainfed crops include cereals (wheat, barley), olives, almonds, and grapes. Irrigated crops include herbaceous plants (sunflower, flax, soybeans), horticulture (greenhouse), and fruits (citrus, orange, tangerine, lemon). Prunus fruits (peach, apricot, plum, apple, pear) are also cultivated. Family farms constitute 90% of agricultural holdings, with the remainder being companies or cooperatives. Irrigation is more prevalent in coastal areas.
Livestock, Fishing, and Forestry
Livestock contributes over one-third of agricultural value, experiencing growth until 2000 and now stabilizing. It is linked to the meat and dairy industries. Pig farming is prominent (4th largest global producer), with 20% of production exported. Spain ranks 4th in the EU for beef production. The poultry sector is also well-developed. Spain is the 2nd largest producer of cattle and goats, with a growing cheese industry. Fishing is locally and regionally important but economically insignificant, connected to the canning industry. Forest area covers 14 million hectares (21% of Spain’s surface), with higher percentages in the Basque Country (54%) and the Canary Islands (10%).
Secondary Sector
Agri-food Industry
The agri-food industry employs 14% of the active population, with significant involvement in transport. Key sectors include meat, dairy, baked goods, wine, beer, and plant-based products. Exports account for 20% (fruits, vegetables, pulses, oil, olives, wine, and fish), while imports represent 10%.
Construction and Other Industries
Construction is a major job creator (12%), influenced by economic factors. Most businesses are small, with some relying on public works. Investment in R&D is 1.2% of Spain’s GDP, compared to the EU average of 1.8%. Key industrial sectors include food, beverages, tobacco (19%), chemicals, pharmaceuticals, healthcare, and automobiles (15%). Other important sectors include metal processing, machinery, metal products, and non-metallic minerals. Textiles, leather, footwear, food, beverages, tobacco, wood, and cork also employ a significant number of people.
Productive and Economic Imbalances
Spain’s Autonomous Communities (CCAA) exhibit uneven development in production, income, and population due to historical, natural, and social factors. Spain’s GDP ranks 5th in the EU and 11th globally. The Basque Country, Madrid, Navarra, and Catalonia lead in financial terms. Most CCAA receive funding from the central government through taxes and direct grants, and can also receive EU funds and borrow. The Basque Country and Navarra have special economic agreements. The Kyoto Protocol, an international convention signed in 2002, aims to reduce industrialized countries’ emissions by 8% below 1990 levels to combat climate change.