section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  Spain has a mixed economy that combines elements of free-market capitalism with social welfare and state intervention. It is one of 19 countries with a nominal gross domestic product (GDP) exceeding $1 trillion per year, ranking 12th largest worldwide and fourth largest both in the European Union and within the eurozone. Spain is classified as a high-income economy by the World Bank and an advanced economy by the International Monetary Fund. As of 2024, it is the fastest growing major advanced economy in the world, growing nearly four times higher than the eurozone average.
  
  Spain began industrializing in the late 18th century, albeit more gradually and unevenly than other European countries; industry was limited mostly to Catalonia (primarily textile manufacturing) and the Basque Country (iron and steel production). Overall economic growth was slower than in most major western European countries, and Spain remained relatively underdeveloped by the early 20th century. The Spanish Civil War, followed by failed autarkic and interventionist policies that were worsened by international isolation, left the economy on the brink of collapse by the late 1950s. Technocratic reforms were enacted to avert the crisis, laying the groundwork for the Spanish economic miracle, a period of rapid growth from 1960 until 1974, during which Spain's economy grew an average of 6.6 percent per year, exceeding every country except Japan.
  
  Since its transition to democracy in the late 1970s, Spain has generally sought to liberalise its economy and deepen regional and international integration. It joined the European Economic Community —now the European Union—in 1986 and implemented policies and reforms that allowed for its participation in the inaugural launch of the euro in 1999. Spain's largest trade and investment partners are within the EU and eurozone, including its four largest export markets; EU membership also coincided with a tripling of foreign direct investment from 1990 to 2000. Spain was among the countries affected most by the 2008 financial crisis and subsequent European debt crisis, leading to the 2008–2014 Spanish financial crisis.
  
  Spain has long struggled with high unemployment, which has never fallen below 8 percent since the 1980s; it stood at 10.61 percent in January 2025. Youth unemployment is particularly severe by both global and regional standards; at 24.90 percent (as of January 2025), it is the highest among EU members and well above the EU average of 14.6 percent. Perennial weak points of Spain's economy include a large informal economy; an education system that performs poorly compared to most developed countries; and low rates of private sector investment.
  
  Since the 1990s, which saw a wave of privatisations, several Spanish companies have reached multinational status; they maintain a strong and leading presence in Latin America—where Spain is the second largest foreign investor after the United States—but have also expanded into Asia, especially China and India. As of 2023, Spain was home to eight of the 500 largest companies in the world by annual revenue, according to the Fortune Global 500; these include Banco Santander, the 14th-largest banking institution in the world; electric utility Iberdrola, the world's largest renewable energy operator; and Telefónica, one of the largest telephone operators and mobile network providers. Twenty Spanish companies are listed in the 2023 Forbes Global 2000 ranking of the 2,000 largest public companies, reflecting diverse sectors such as construction (ACS Group), aviation (ENAIRE), pharmaceuticals (Grifols), and transportation (Ferrovial). Additionally, one of Spain's largest private sector entities is Mondragon Corporation, the world's largest worker-owned cooperative.
  
  The automotive industry is one of the largest employers in the country and a major contributor to economic growth, accounting for one-tenth of gross domestic product and 18 percent of total exports (including vehicles and auto-parts). In 2023, Spain produced 2.45 million automobiles—of which over 2.1 million were exported abroad—ranking eighth in the world and second in Europe (after Germany) by total number. In total, 89 percent of vehicles and 60% of auto-parts manufactured in Spain were exported worldwide in 2023; the total external trade surplus of vehicles alone reached €18.8bn in 2023. Overall, the automotive industry supports nearly 2 million jobs, or 9 percent of the labor force.