The Economy

Economy - overview
Spain's mixed capitalist economy is the 12th largest in the world, and its per capita income roughly matches that of Germany and France. However, after almost 15 years of above average GDP growth, the Spanish economy began to slow in late 2007 and entered into a recession in the second quarter of 2008. GDP contracted by 3.7% in 2009, ending a 16-year growth trend, and by another 0.2% in 2010, making Spain the last major economy to emerge from the global recession. The reversal in Spain's economic growth reflected a significant decline in construction amid an oversupply of housing and falling consumer spending, while exports actually have begun to grow. Government efforts to boost the economy through stimulus spending, extended unemployment benefits, and loan guarantees did not prevent a sharp rise in the unemployment rate, which rose from a low of about 8% in 2007 to 20% in 2010. The government budget deficit worsened from 3.8% of GDP in 2008 to about 9.7% of GDP in 2010, more than three times the euro-zone limit. Spain's large budget deficit and poor economic growth prospects have made it vulnerable to financial contagion from other highly-indebted euro zone members despite the government's efforts to cut spending, privatize industries, and boost competitiveness through labor market reforms. Spanish banks' high exposure to the collapsed domestic construction and real estate market also poses a continued risk for the sector. The government oversaw a restructuring of the savings bank sector in 2010, and provided some $15 billion in capital to various institutions. Investors remain concerned that Madrid may need to bail out more troubled banks. The Bank of Spain, however, is seeking to boost confidence in the financial sector by pressuring banks to come clean about their losses and consolidate into stronger groups. The Spanish economy boomed from 1986 to 1990 averaging 5% annual growth. After a European-wide recession in the early 1990s, the Spanish economy resumed moderate growth starting in 1994. Spain's mixed capitalist economy supports a GDP that on a per capita basis is equal to that of the leading West European economies. The center-right government of former President Jose Maria AZNAR successfully worked to gain admission to the first group of countries launching the European single currency (the euro) on 1 January 1999. The AZNAR administration continued to advocate liberalization, privatization, and deregulation of the economy and introduced some tax reforms to that end. Unemployment fell steadily under the AZNAR administration but remains high at 7.6%. Growth averaging more than 3% annually during 2003-07 was satisfactory given the background of a faltering European economy. The Socialist president, RODRIGUEZ ZAPATERO, has made mixed progress in carrying out key structural reforms, which need to be accelerated and deepened to sustain Spain's economic growth. Despite the economy's relative solid footing significant downside risks remain including Spain's continued loss of competitiveness, the potential for a housing market collapse, the country's changing demographic profile, and a decline in EU structural funds.
GDP (purchasing power parity):
$1.376 trillion (2010 est.) country comparison to the world: 14 $1.379 trillion (2009 est.) $1.432 trillion (2008 est.) note: data are in 2010 US dollars
GDP (official exchange rate):
$1.375 trillion (2010 est.)
GDP - real growth rate:
-0.2% (2010 est.) country comparison to the world: 192 -3.7% (2009 est.) 0.9% (2008 est.)
GDP - per capita (PPP):
$29,500 (2010 est.) country comparison to the world: 47 $29,800 (2009 est.) $31,200 (2008 est.) note: data are in 2010 US dollars
GDP - composition by sector:
agriculture: 2.9% industry: 25.5% services: 71.6% (2010 est.)
Labor force:
22.96 million (2010 est.) country comparison to the world: 27
Labor force - by occupation:
agriculture: 4.2% industry: 24% services: 71.7% (2009 est.)
Unemployment rate:
20% (2010 est.) country comparison to the world: 166 18.1% (2009 est.)
Population below poverty line:
19.8% (2005)
Household income or consumption by percentage share:
lowest 10%: 2.6% highest 10%: 26.6% (2000)
Distribution of family income - Gini index:
32 (2005) country comparison to the world: 103 32.5 (1990)
Investment (gross fixed):
22.9% of GDP (2010 est.) country comparison to the world: 59
Budget:
revenues: $515.8 billion expenditures: $648.6 billion (2010 est.)
Public debt:
63.4% of GDP (2010 est.) country comparison to the world: 27 53.2% of GDP (2009 est.)
Inflation rate (consumer prices):
1.3% (2010 est.) country comparison to the world: 29 -0.3% (2009 est.)
Central bank discount rate:
1.75% (31 December 2010) country comparison to the world: 119 1.75% (31 December 2009) note: this is the European Central Bank's rate on the marginal lending facility, which offers overnight credit to banks in the euro area
Commercial bank prime lending rate:
10.72% (31 December 2009 est.) country comparison to the world: 79 11.02% (31 December 2008 est.)
Stock of narrow money:
$849.2 billion (31 December 2010 est.) country comparison to the world: 9 $856.5 billion (31 December 2009 est.) note: see entry for the European Union for money supply in the euro area; the European Central Bank (ECB) controls monetary policy for the 17 members of the Economic and Monetary Union (EMU); individual members of the EMU do not control the quantity of money circulating within their own borders
Stock of broad money:
$2.264 trillion (31 December 2010 est.) country comparison to the world: 9 $2.451 trillion (31 December 2009 est.)
Stock of domestic credit:
$3.683 trillion (31 December 2009 est.) country comparison to the world: 8 $3.451 trillion (31 December 2008 est.)
Market value of publicly traded shares:
$1.297 trillion (31 December 2009) country comparison to the world: 11 $946.1 billion (31 December 2008) $1.8 trillion (31 December 2007)
Agriculture - products:
grain, vegetables, olives, wine grapes, sugar beets, citrus; beef, pork, poultry, dairy products; fish
Industries:
textiles and apparel (including footwear), food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools, tourism, clay and refractory products, footwear, pharmaceuticals, medical equipment
Industrial production growth rate:
-2% (2010 est.) country comparison to the world: 161
Electricity - production:
300.5 billion kWh (2008 est.) country comparison to the world: 13
Electricity - consumption:
276.1 billion kWh (2008 est.) country comparison to the world: 14
Electricity - exports:
16.92 billion kWh (2008 est.)
Electricity - imports:
5.88 billion kWh (2008 est.)
Oil - production:
27,230 bbl/day (2009 est.) country comparison to the world: 71
Oil - consumption:
1.482 million bbl/day (2009 est.) country comparison to the world: 17
Oil - exports:
218,600 bbl/day (2008 est.) country comparison to the world: 53
Oil - imports:
1.716 million bbl/day (2008 est.) country comparison to the world: 11
Oil - proved reserves:
150 million bbl (1 January 2010 est.) country comparison to the world: 65
Natural gas - production:
13 million cu m (2009 est.) country comparison to the world: 89
Natural gas - consumption:
33.88 billion cu m (2009 est.) country comparison to the world: 26
Natural gas - exports:
975 million cu m (2009 est.) country comparison to the world: 36
Natural gas - imports:
34.67 billion cu m (2009 est.) country comparison to the world: 9
Natural gas - proved reserves:
2.548 billion cu m (1 January 2010 est.) country comparison to the world: 95
Current account balance:
-$66.74 billion (2010 est.) country comparison to the world: 190 -$80.38 billion (2009 est.)
Exports:
$268.3 billion (2010 est.) country comparison to the world: 18 $224 billion (2009 est.)
Exports - commodities:
machinery, motor vehicles; foodstuffs, pharmaceuticals, medicines, other consumer goods
Exports - partners:
France 19.27%, Germany 11.11%, Portugal 9.21%, Italy 8.24%, UK 6.18% (2009)
Imports:
$324.6 billion (2010 est.) country comparison to the world: 14 $286.8 billion (2009 est.)
Imports - commodities:
machinery and equipment, fuels, chemicals, semifinished goods, foodstuffs, consumer goods, measuring and medical control instruments
Imports - partners:
Germany 15.02%, France 12.82%, Italy 7.17%, China 5.8%, Netherlands 5.22%, UK 4.7% (2009)
Reserves of foreign exchange and gold:
$NA (31 December 2010 est.) $28.2 billion (31 December 2009 est.)
Debt - external:
$2.166 trillion (30 June 2010) country comparison to the world: 10 $2.317 trillion (31 December 2008)
Stock of direct foreign investment - at home:
$668.5 billion (31 December 2010 est.) country comparison to the world: 8 $664 billion (31 December 2009 est.)
Stock of direct foreign investment - abroad:
$641 billion (31 December 2010 est.) country comparison to the world: 9 $634.4 billion (31 December 2009 est.)
Exchange rates:
euros (EUR) per US dollar - 0.755 (2010) 0.7198 (2009) 0.6827 (2008) 0.7345 (2007) 0.7964 (2006) Important Cities Madrid is the capital of Spain. Barcelona is the largest commercial center and tourist destination. Other important cities in Spain include Valencia, La Coruña, Sevilla, Malaga, Granada, Ibiza, Palma de Mallorca and Santa Cruz. Economic Sectors Spain has been progressing economically since the Spanish Civil War in 1939 when its economy was devastated. Today, tourism, industry and agriculture play a major role in the country’s economy. Spain has seen the fastest economic development in Western Europe since the 1960’s. Tourism has played a major role since the 1960’s and in the last 40 years, tourism has been the fastest growing economic sector of the country’s GDP, helping to accelerate growth overall. Millions of visitors flock to Spain and contribute almost $50 billion USD to Spain’s economy each year. Agriculture contributes less than 5% of the nation’s GDP, which is high compared to other countries in Western Europe. Fishing is another important economic sector for Spain. Industry contributes about 35% of Spain’s GDP, but industry is still somewhat dependent on foreign investment. The most common products from this sector are motor vehicles, steel, textiles, chemicals and ships. Economic aid-donor:  ODA, $1.33 billion (1999)  Currency (code):  euro (EUR) note: on 1 January 1999, the European Monetary Union introduced the euro as a common currency to be used by the financial institutions of member countries; on 1 January 2002, the euro became the sole currency for everyday transactions with the member countries  Exchange rates:  euros per US dollar- 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003)  Fiscal year:  calender year

Valencia

Valencia is one of the most beautiful cities in Spain. I would like to think that it is the "hidden treasure of Spain" but of course I am a little biased. Last summer I spent three incredible months exploring, learning and eventually failing in love with the city and the people. I truly believe that everyone during their adventures in Spain should visit Valencia and become enthralled by her beauty. 

A brief overview of Valencia from Yahoo! Travel:

Valencia is emerging as one of the nation's most progressive cities. Spain's third largest, it continues to reinvent itself at a heady pace, and is well on the way to equalling the cosmopolitan vitality of Barcelona and the cultural variety of Madrid. In the last decade or so, the vast, iconic Ciudad de las Artes y Ciencias – has emerged, a metro has opened and dozens of hip new bars, restaurants and boutiques have injected new life into the historic centre.

Despite its size and stylista cachet, Valencia retains an unpretentious if tangibly charged air. With low-cost airlines bussing in visitors by the planeload, tourism has also hit the city in a big way, and the ubiquitous English breakfast has become a fixture.

The most atmospheric area to explore is undoubtedly the maze-like streets of the Barrio del Carmen (in Valenciano "de Carmé"), roughly the area north of the Mercado Central to the Río Turia. This once-neglected quarter of the city continues to regenerate, making for an incredibly vibrant, alternative neighbourhood. The city walls were pulled down in 1871 to make way for a ring road, and the beautiful church of Santo Domingo, in Plaza de Tetuan, has been converted into the barracks from which that General Milans del Bosch ordered his tanks during the abortive coup of 1981.


The oldest part of the city is almost entirely encircled by a great loop of the Río Turia, now a landscaped riverbed park. The ancient stone bridges remain, but the riverbed now houses cycle ways, footpaths and football pitches, as well as the astonishing Ciudad de las Artes y Ciencias, Europe's largest cultural complex.

Valencia's main beach is the Playa de la Malvarrosa to the east of the city centre, which becomes Playa de las Arenas at its southern end.

The city has long boasted some of the best nightlife to be found in mainland Spain. Its fiestas are among the most riotous in Spain; Las Fallas, March 12–19, culminates in a massive bonfire where all the processional floats are burned.

A little more history: 

The province of Valencia, the largest of the three making up the Valencian community, is situated in the centre of the Spanish Mediterranean coastline while overlooking the spacious Gulf of Valencia; it is skirted at the back by a group of medium-high mountains and rolling plains leading to the lands of Aragon and Castile-La Mancha. It is also opposite the Balearic islands and equidistant from the country's two major decision-taking centres: Madrid and Barcelona. Valencia is a place identified with the Mediterranean Sea because its culture deriving from the old Mare Nostrum is shown in its patterns of social behaviour.

Furthermore, Valencia City is the administrative capital of the Valencian community and the centre of the region of L'Horta. Valencia is the most densely populated town in the region as it is encircled by a wide belt of medium-sized districts with an average density of 1,600 inhabitants per square kilometre forming an unbroken built-up area.

A bit of light travelling in Valencia

Sightseeing around the city begins in the old quarter. Until the mid-nineteenth century, it was defended by a wall, which was the inner route of the no 5 bus. Still standing as a proof are the graceful Torres de Serranos, the spacious Torres de Quart and some remains of the apron wall in the basement of the Valencia Institute of Modern Arts (IVAM). The most outstanding artistic heritage is the one found in the districts of Seu and Xerea, where the marks left by the Romans lie hidden beneath Arab ruins and modern churches and palaces.

The Center of Valencia 

The Mercat district took shape around the trading life of the city's inhabitants. Accordingly, its two most emblematic buildings are used for trading purposes. The Gothic building of La Lonja, declared by UNESCO as a universal heritage monument, features a beautiful columned room where the old tables on which trading transactions were finalised are still in use today. Outside the destroyed wall grew the Valencia of the bourgeoisie, with its wide pavements, broad landscaped thoroughfares and countless instances of modernist architecture. On the other side of the Turia's old riverbed lie the nursery gardens, along with the Fine Arts Museum and the ultramodern part of the city which, on account of its size, serves as a nexus between the coastal townships and the old quarter. The futuristic face of the city is mirrored on the old riverbed through the Gulliver Children's park and the leisure and culture complex, the Ciutat de les Arts i de les Ciencies (the City of Arts & Culture). Life in the city spreads down to the seafront with the harbour and the beaches of Las Arenas and La Malvarrosa.

Ciutat de les Arts i de les Ciencies 

La Malvarrosa

The Mediterranean 

Granada

Granada is a beautiful, old historic city that everyone should make time to visit regardless of why they have ventured to Spain. The following is a brief view of Granada-one of Spain's most famous cities. It gives a brief overview of the city and some additional facts that everyone should know. This is from Alicante-Granada.com:

Granada Spain

Overview on the City and Interesting Places

Granada Spain, together with Cordoba and Sevilla, is considered one of the three precious jewels of Andalucía. 

Its panoramic views which include the white tipped Sierra Nevada mountain range, rolling green hills and numerous monuments with their rich history, make Granada magical. The city took up where Cordoba left off in 1256. After Cordoba was conquered by the Cristians in 1256, the Muslim population fleed to Granada where Mohamed Ibn Ahmar founded the Nazarí dynasty.

History of Granada

From 1238 to 1492, Granada acquired all its splendor both artistically as well as economically. It was in 1492 when the Catholic King, Fernando and the Queen, Isabel made King Boabdil surrender, but the city did not start to decline until 1609 when the Moorish people finally left. All these years of occupation were not in vane as Granada is blessed with an amazing Arab influence, architectural culture and remembrances.

Architectural Wonders of Granada

The Alhambra or Red Palace is without a doubt the most well-known monument in Granada, in Spain, and practically all over the world. We will start our excursion, on foot, from the New Square (Plaza Nueva) by climbing the slope called Cuesta Gomérez which is lined with handicraft shops or by getting the Alhambra bus which leaves from the center city. But before going into the Alhambra you should visit the Generalife Gardens which was the summer house of the Arab kings. The Alhambra is where we can see palaces, a citadel, and museums altogether. Let´s start the visit in the Presentation room where we get our first glimpse of the different types of techniques and decoration from the 14th c. The columns are the most notable reminder of the architecture also used in the Nazarí Palace. This style has its main function in decorating, causing us to see fascinating shadows and lights. The Albaicin (old Moorish neighborhood) and Sacromonte come into sight at this point in our tour of the Alhambra. There are endless chambres such as the Throne room, and the Kings Chamber with its original Italian hunting scene paintings. As we leave the palace through the garden archway we can view the Palace of Charles V (Renaissance style). Here, under the same roof, is the Muslim Museum Spanish whose most famous possession in a blue vase (1,32 cm. high) and the Fine Arts Museum where we can contemplate religious paintings. The oldest monument, the Alcazaba (13th c.) or military quarters, makes us eyewitnesses of breath-taking scenic views of Granada. Taking a new route to see other attractions, we will leave once again from the New Square, we ascend the Carrera de Darro Street which takes us to “El Buñuelo”(the Arab baths) to continue on to discover the Archaelogical Museum with a Plateresque art entrance. Either on foot or by burro (donkey), we arrive at the Cármenes (adorable white houses with gardens) among churches, convents and town squares. From here we have a birds´ eye view of the Alhambra and in its background, the Sierra Nevada mountain range.

Sacromonte is another area next Albaicín which is known for its flamenco, danced in the caves in these foothills. The shows are very authentic even though they are performed basically for tourists. The Festival of Music and Dance is celebrated from June 20th to the middle of July and it is the best of all these types of activities in Spain. It is held in Generalife Gardens and in the awesome Patio of Charles V Palace in the Alhambra. You may have the chance to see internationally well-known flamenco dancers such as Joaquín Cortés or Antonio Canales. Just a short walk away in the Sacromonte Abbey; well worth the visit. Back in the hub of the city, we direct ourselves to the Catedral neighbourhood. The presence of the Royal Chapel (Capilla Real) is magnificent. This was built by the Catholic King an Queen who wished to be buried in Granada, the place where Christianism was reunited. The maeble tombs of the kings and a splendid museum with famous artists are not to be missed.

Savoury food

In any of the restaurats or local cafés in Granada, we will be able to taste the characteristic food such as lima beans with ham or the Sacromonte omelette. Light Sapanish beer, Moorish teas or wine are always on hand. In the Caldería Street there are delicious honey pasteries waiting for us. The Squares of Bibarrambla and Mariana Pineda are perfect for resting and having a light snack. These light snacks or “tapas” are usually cold small portions of meat, ham, fish or cheese, or small hot portions like grated bread with fish or meat. Mouth watering, really!

Extra Excursions Around the Area

About 32 km. South of Granada is the Sierra Nevada. Spring and Autumn are ideal seasons to go hiking, horseback riding or trekking. In winter it is a sports man´s delight with skiing, sleighing, going on a snow mobile, using inner tubes, ice-skating or just relaxing. Las Alpujarras is one of the most fascinating but unknown regions on the south side of the Sierra Nevada. Its distinctive scenery with over 65 different types of vegetation must be seen with your own eyes. There are many small towns to visit and lots of comfy places to stay. Guadix, to the east of Granada, is known for its caves, diversified architecture and beautiful Barroque facade of the cathedral. Granada, simple marvellous!

Bullfighting

History of Bullfighting in Spain

The spectacle of bullfighting has existed in one form or another since ancient days. For example, a contest of some sort is depicted in a wall painting unearthed at Knossos in Crete, dating from about 2000 BC. It shows male and female acrobats confronting a bull, grabbing its horns as it charges, and vaulting over its back. 

Bullfights were popular spectacles in ancient Rome, but it was in the Iberian Peninsula that these contests were fully developed. The Moors from North Africa who overran Andalusia in AD 711 changed bullfighting significantly from the brutish, formless spectacle practised by the conquered Visigoths to a ritualistic occasion observed in connection with feast days, on which the conquering Moors, mounted on highly trained horses, confronted and killed the bulls.

As bullfighting developed, the men on foot, who by their capework aided the horsemen in positioning the bulls, began to draw more attention from the crowd, and the modern corrida began to take form. Today the bullfight is much the same as it has been since about 1726, when Francisco Romero of Ronda, Spain, introduced the estoque (the sword) and the muleta (the small, more easily wielded worsted cape used in the last part of the fight).

Your typical bullfighter in his dressy uniform!

Bull fighting: The Spectacle

Six bulls, to be killed by three matadors, are usually required for one afternoon's corrida, and each encounter lasts about 15 minutes. At the appointed time, generally 5 PM, the three matadors, each followed by their assistants, the banderilleros and the picadors, march into the ring to the accompaniment of traditional paso doble (“march rhythm”) music. The matadors (the term toreador, popularized by the French opera Carmen, is erroneous usage) are the stars of the show. They wear a distinctive costume, consisting of a silk jacket heavily embroidered in gold, skintight trousers, and a montera (a bicorne hat). A traje de luces (“suit of lights”), as it is known, can cost several thousand pounds; a top matador must have at least six of them a season. 

Many fans come from all over to watch the fight! Fights are pretty much always packed full of people and the cheering and yelling can be heard from miles and miles away. 

When a bull first comes into the arena out of the toril, or bull pen gate, the matador greets it with a series of manoeuvres, or passes, with a large cape; these passes are usually verónicas, the basic cape manoeuvre (named after the woman who held out a cloth to Christ on his way to the crucifixion).

The amount of applause the matador receives is based on his proximity to the horns of the bull, his tranquillity in the face of danger, and his grace in swinging the cape in front of an infuriated animal weighing more than 460 kg (1,000 lb). The bull instinctively goes for the cloth because it is a large, moving target, not because of its colour; bulls are colour-blind and charge just as readily at the inside of the cape, which is yellow.

Fighting bulls charge instantly at anything that moves because of their natural instinct and centuries of special breeding. Unlike domestic bulls, they do not have to be trained to charge, nor are they starved or tortured to make them savage. Those animals selected for the corrida are allowed to live a year longer than those assigned to the slaughterhouse. Bulls to be fought by novilleros (beginners) are supposed to be three years old and those fought by full matadors are supposed to be at least four.

The second part of the corrida consists of the work of the picadors, bearing lances and mounted on horses (padded in compliance with a ruling passed in 1930 and therefore rarely injured). The picadors wear flat-brimmed, beige felt hats called castoreños, silver-embroidered jackets, chamois trousers, and steel leg armour. After three lancings or less, depending on the judgment of the president of the corrida for that day, a trumpet blows, and the banderilleros, working on foot, advance to place their banderillas (brightly adorned, barbed sticks) in the bull's shoulders in order to lower its head for the eventual kill. They wear costumes similar to those of their matadors but their jackets and trousers are embroidered in silver.

After the placing of the banderillas, a trumpet sounds signalling the last phase of the fight. Although the bull has been weakened and slowed, it has also become warier during the course of the fight, sensing that behind the cape is its true enemy; most gorings occur at this time. The serge cloth of the muleta is draped over the estoque, and the matador begins what is called the faena, the last act of the bullfight. The aficionados (ardent fans) study the matador's every move, the ballet-like passes practised since childhood. (Most matadors come from bullfighting families and learn their art when very young.) As with every manoeuvre in the ring, the emphasis is on the ability to increase but control the personal danger, maintaining the balance between suicide and mere survival. In other words, the real contest is not between the matador and an animal; it is the matador's internal struggle.

The basic muleta passes are the trincherazo, generally done with one knee on the ground and at the beginning of the faena; the pase de la firma, simply moving the cloth in front of the bull's nose while the fighter remains motionless; the manoletina, a pass invented by the great Spanish matador Manolete (Manuel Laureano Rodríguez Sánchez), where the muleta is held behind the body; and the natural, a pass in which danger to the matador is increased by taking the sword out of the muleta, thereby reducing the target size and tempting the bull to charge at the larger object—the bullfighter.

After several minutes spent in making these passes, wherein the matador tries to stimulate the excitement of the crowd by working closer and closer to the horns, the fighter takes the sword and lines up the bull for the kill. The blade must go between the shoulder blades; because the space between them is very small, it is imperative that the front feet of the bull be together as the matador hurtles over the horns. The kill, properly done by aiming straight over the bull's horns and plunging the sword between its withers into the aorta region, requires discipline, training, and raw courage; for this reason it is known as the “moment of truth”.