Demographics
As per January 1st, 2010, the municipal records had it that the population of Spain was around 47,150,819 Breuer et al. 23). However, this population reduced to 47.1 million people in the year 2012, dropping by massive figures. This decrease was as a result of immigrants returning to their homes after the fiscal crisis in Europe. The country has a population density of 91.4 inhabitants in every square kilometer. This represents a much lower population when compared to most European countries. With Madrid as the exception, areas along the coast are the most densely populated. A sparsely populated region is not ideal for investing and carrying out businesses. In most cases, this may lead to lack of a market, meaning that investors may not reap their investment rewards. However, there are other factors that mitigate this problem in creating a reliable market (Breuer et al. 24).
The age structure of the country offers a consolation in mitigating the sparsely populated country. According to information given in the year 2013, the population between 15 and 64 years comprises of 69.1 percent of the total population. Those below 14 years represented 14.4 percent of the population whereas 16.5 percent was made of people over 65 years (Breuer et al. 24). With the majority being between 15 years and 64 years, the population is bound to increase. The sex ratio is also interesting. As at 2013, the sex ratio at birth was 1.07 males/female. This figure reduced to 1.06 males/female for people less than 14 years. It further reduced to 1.01 males/female for people between 15 and 64 years. For people over 65 years, the ratio stands at 0.72 males/female. Spain traditionally had a constant population as little migration is experienced. However, this changed in 2010 when immigrants moved out due to the fiscal effects in Europe. With such an unpredictable population, it is difficult to evaluate the market behavior. This is dangerous for potential investors (Breuer et al. 26).
Economic statistics
In the year 2013, Spain’s GDP was 1358.26 billion US dollars. This represents 2.19 percent of the economy of the world. The country’s GNP is 1100.1 billion dollars, whereas the GNP per capita stands at 25358 dollars. In 2014’s second quarter, the country’s GDP expanded by 0.60 percent. From 1995, the country has averaged a growth rate of 0.51 percent (Ruiz-Morales et al. 47). This constant growth is essential in boosting the country’s economy, ensuring that businesses will be boosted.
According to the information availed in 2014, Spain has a per capita income of $31, 942. Because of this, the country is ranked as being in the 34th position all over the world. With the leading country having a per capita income of $145,894 $, this portrays a bad picture in terms of the country’s economy. However, this is facilitated by the fact that the second ranked country has a per capita income of 90,333 $. With this, the economy is sufficient to boost business. This figure partially reflects the country’s distribution of resources among individuals. The county’s average family income is 22799 $ a year. This, however, does not point out at the gap between the rich and the poor. The gap is considerably big, with the population’s top 20 percent earning as much as six times the bottom 20 percent. This does not however have a big impact on investments (Ruiz-Morales et al. 48).
International trade statistics
Spain majorly benefits from foreign trade, with its leading exports being machinery such as motor vehicles, food products and other manufactured goods. These products earn the country foreign exchange. On the other hand, the country imports oil and organic chemicals among other products. The latest statistics show that the country is cutting on its imports while increasing the exports. This is favorable to the country’s economy. The country has a single currency exchange system based on the US dollar. This ensures stability of the economy (Spain, pp10-14).
Trade restrictions
As a member of the EU, Spain adheres to the trading rules set by the union. It determines custom duties based on insurance, cost and freight. To non-EU imports, it applies the EU Common External Tariffs such as VAT. Spain has trade embargoes over other countries. For instance, it embargoes arms trade to Israel. This is essential in protecting her integrity. The country does not have quotas in European Union imports, meaning that her economy is exposed to the outside world. These factors create an environment that is favorable for the growth of the economy (Spain, 13).
Labor force, size and unemployment rate
The latest figures state that Spain has a labor force of 23.2 million as per January 2014 (Ramirez et al. 213). This figure comprises people aged above fifteen years who meet the ILO definition of a population that is economically active. This high figure is important to potential investor as they will have a readily available labor force to work with. The country has an unemployment rate of 23.67 percent as at 2014’s third quarter. This is a decrease from the second quarter’s 24.47 percent. From the year 1976 to 2014, the unemployment rate has averaged 16.27 percent. With this in mind, the country investors are in a better position to find labor for their investments (Ramirez et al. 215).
Works Cited
Breuer, Toni. "Changing patterns of the population distribution in Spain." GeoJournal 13.1 (2013): 23-26. Print.
Marques, Helena, and Hugh Metcalf. "Ending Restrictions To Migration From The New Eu Member Countries: Sectoral Trade And Real Wage Effects." Contemporary Economic Policy 24.2 (2006): 287-299. Print.
Ramirez, Dionisio, and Gabriel Rodriguez. "Do Labor Reforms in Spain Have an Effect on the Equilibrium Unemployment Rate?." International Journal of Social Science Studies 2.1 (2013): 213-215. Print.
Ruiz-Morales, J.m.. "The ECONOMY OF SPAIN, AND SOURCE MATERIAL THEREON." Aslib Proceedings 7.1 (2014): 47-48. Print.
"Spain." International Trade by Commodity Statistics 2011.5 (2012): 10-14. Print.
