Spain and Area of Influence
Spain, with a population of around 48 million, is one of the world’s leading economic powers, ranking 13th in terms of GDP. It is also one of the 10 largest recipients of Foreign Direct Investment according to the “World Investment Report”. Spain’s attractions lie not only in its domestic market, but also in the countries within its sphere of influence, with which it maintains close economic relations: Europe, North Africa, Mediterranean countries and Latin America, being a gateway to all these countries.
Spain has traditionally been an agricultural country and continues to be one of the largest producers in Western Europe, but since the 1950s industry and later the service sector have been gaining importance. Currently, around 74.6% of GDP corresponds to the service sector, 16.9% to industry, 5.6% to construction and 2.9% to agriculture.
Due to the strong growth in international trade and foreign investment, Spain has become one of the most internationalised countries in the world. Regarding goods trading, Spain is the 18th largest exporter and 14th largest importer in the world, and it is the 8th largest exporter and 14th largest importer in the world of services.
The main markets for Spanish companies are the European Union and Latin America, the latter with strong cultural ties, including the language it shares with 20 other countries.
Latin America countries are very diverse, not only because of their social and cultural aspects, but also because of their economic policies. Latin America has a population of around 660 million, and its economies together account for 8% of the world’s GDP, being the largest Brazil, Mexico and Argentina. The most developed economies in terms of GDP per capita are Chile, Argentina and Uruguay. The countries where agriculture has the greatest weight are Paraguay (55%), Argentina (27%) and Brazil (20%), the latter being the world’s largest producer of coffee, oranges and sugar cane. One of the most important industries is oil&gas, accounting for 63% of Venezuela’s exports, 46% in Ecuador, 40% in Colombia and 37% in Bolivia. In the mining sector, Chile is the world’s largest producer of copper, lithium and iodine, and Peru is the world’s largest producer of silver. In Mexico, the main driver of the economy is the manufacturing sector, which accounts for 37% of GDP. In contrast, Panama and Costa Rica are mainly service-based economies. The largest recipient economies of foreign investment in Latin America are Brazil, Mexico and Chile, with the US and Europe as the main investors.
As for the European Union, it has a population of over 500 million and a GDP of around EUR 15 trillion. It is the second largest political entity in terms of international market share (after China and before the United States). Service sector is the largest in the EU in terms of GDP, followed by industry. Within this sector, steel and metallurgy, capital goods, automobile, aeronautics, shipbuilding, aerospace and, increasingly important, industries related to advanced technologies are of great importance.
Spain’s investment needs and its close relationship with all these countries make it the best platform for entering into these markets.
Since 2011 CONEXIO has brought security and experience in Spain at the service of our customers, introducing products in the Spanish market, developing investment projects, connecting companies with 48 million customers and driving their success.
For more information about the Spanish market, please do not hesitate to contact us.