Spain’s Economy: Agriculture, Industry, Energy, and Tourism
Agriculture in Spain
The primary sector in Spain has traditionally been the most important part of the Spanish economy. However, since the mid-twentieth century, following the development of industry and services, it has declined in economic importance.
Main Crops
- Cereals: Barley, wheat, and maize are prominent. The communities that stand out for their production are Castilla y León, Castilla-La Mancha, and Aragon.
- Olives and Vines: The central area is composed of olive-producing provinces like Jaén in Andalusia. Vineyards dominate in Córdoba, Castilla-La Mancha, Valencia, Catalonia, Andalusia, and Rioja.
- Fruits: A distinction must be made between citrus fruits (oranges, lemons, tangerines, etc.), to which Valencia contributes the largest share, and non-citrus fruits (apples, cherries, peaches, etc.) that occupy the Mediterranean coastal strip from Tarragona to the Region of Murcia, in addition to Aragon and Lleida.
- Flowers: Cultivation is expanding. Flowers are produced mainly in Andalusia, Galicia, Murcia, the Canary Islands, Valencia, and Catalonia.
- Greenhouse Vegetables: These are primarily produced in greenhouses. The main producer is Andalusia.
Spain’s Integration into Agricultural Policy
Spain’s entry into the European Community represented an effort to modernize farms. Initially, it was beneficial as Spain could be part of a large market to sell its products and was favored by agreements between the EU and other countries. However, competition with imported products within Spain itself has also arisen. Spain has received significant financial support. A problem of the EU is that agricultural productivity has risen, and now the market cannot absorb all production. To avoid falling prices, the EU buys the surplus, and this forces production quota awards.
Agricultural Landscapes
Continental Interior Landscape
This includes Castilla-La Mancha, Castilla y León, and Extremadura. Rainfed agriculture predominates, along with sheep farming. Rainfed agriculture produces grain, vines, and olives. In irrigated lands, there are orchards. In mountainous areas on the margins of the valleys, cattle and pig breeding are common. The settlement is not dispersed, except in inland areas of Andalusia.
Atlantic Agricultural Landscape
This includes Galicia, Asturias, Cantabria, and the Basque Country. It is a wetland and mountainous area. Cattle farming predominates, which is raised extensively or semi-attached to the land. It contains many forests, and agriculture is of small extent. The population is found in small cottages, small villages, or hamlets.
Mediterranean Agricultural Landscape
This extends along the coast from the French border in Catalonia to the border with Portugal. Agriculture is based mainly on the cultivation of fruits, vegetables, and flowers. Pig and poultry farming is intensive. The houses are situated near crops that require intensive work.
Spain: A Fishing Power
Spain is a global fishing power since fishing has landed much commercial value. The fleet of ships is large and competitive, the fishing sectors have a very entrepreneurial spirit, and there is a skilled workforce.
Development of Fisheries
With the law of renovation and protection of the fishing fleet in 1961 until the 1970s, the Spanish fishing fleet developed greatly. However, changes in 1972 led to a crisis attributable to two factors: the depletion of species and difficulties in fishing areas.
The most important Spanish fishing region is the northwest, which includes all the Galician coast. It is important for its value and the volume of fish landed.
Energy in Spain
- Coal: The energy source that has traditionally been used to generate electricity by being burned in power stations.
- Nuclear Energy: Obtained from nuclear plants, although there are many nuclear waste concerns.
- Hydropower: Obtained near rivers with abundant flow.
- Alternative Energy: Such as solar, which harnesses the sun, or wind, which utilizes wind strength.
Future Challenges
- The increasing rate of energy expenditure caused by population growth in urbanized areas or economic and industrial expansion.
- Energy dependence of Spain which, in the absence of quality coal, oil, and natural gas, must be purchased abroad.
Development of Industry in Spain
In the nineteenth century, Spain began its industrial development but lagged behind other countries in Western Europe. Today, Spain, with a modernized industrial system, belongs to the group of industrialized countries. Spain occupies a discrete position within the network. The Spanish industry has a direct bearing on the industrial network of the European Union. Industry in Spain is concentrated in four main areas (Catalonia, Madrid, the Basque Country, and Valencia) and several major industrial centers (Zaragoza, Gijón, Seville, Vigo, Valladolid, etc.). These industrial concentrations form lines linking each area and important towns, notably the Ebro axis (Catalonia, Aragon, Navarra, La Rioja, Basque Country) with links to Madrid via Zaragoza, and the Mediterranean axis (Murcia, Comunitat Valenciana, Catalonia) connecting with the European Mediterranean axis.
Spanish Trade and the European Union
In Spain, business develops within the scope of the European Union. This trade has been facilitated by EU standards, the common currency (the euro), and the free movement of goods between EU countries.
- Trade Balance: It has a negative balance because the products Spain buys are worth more than what it sells.
- Balance of Payments: It is positive, thanks to revenues from tourism, foreign investment, and capital movements.
Current Spanish Model of Tourism
Tourism in Spain experienced its greatest impetus in the 1960s, becoming a mass phenomenon, basically of foreign origin. This sun and beach tourism is called Spanish domestic tourism.