Spain's Economic Landscape and Geopolitical Boundaries

Economic Development and Post-Industrial Society

European society is a post-industrial society. While industry was once the main economic activity on the continent, currently the service sector generates more jobs and wealth. A post-industrial society has evolved from an industry-based economy to one primarily based on services.

Composition of GDP at Market Prices in 2007

The following data illustrates the economic structure of Spain and Catalonia in 2007:

• Agriculture, Fisheries: Spain 2.6%, Catalonia 1.1%
• Industry and Energy: Spain 16.1%, Catalonia 20.0%
• Construction: Spain 11.0%, Catalonia 9.6%
• Services: Spain 59.9%, Catalonia 59.4%
• Net Imports of Products: Spain 10.4%, Catalonia 9.9%

The Economy of Catalonia: A Key EU Region

Catalonia is considered the autonomous community with the most economic activity in Spain, and Spain itself is among the most important states in the European Union. This assessment is based on data from the Statistical Institute of Catalonia (IDESCAT).

The Catalan Economy within the Spanish Context

In the period 1850-1950, Catalonia was the economic engine of Spain thanks to its industrialization. However, the diffusion processes of modernization, further industrialization, and Spain's entry into the EU have, with the passage of time, diminished the economic and social differences between Catalonia and the rest of the state.

The Spanish Economy in the EU and Global Context

Spain is among the group of countries in the European Union notable for its economic volume and production, with a tendency to grow above the average. However, when compared with the economies of its closest environment, Spain often faces more difficulties in some important respects.

• Unemployment: Spain is one of the states with a higher unemployment rate.
• Inflation: The Spanish inflation rate, or price increment, is often one to two percentage points above the European average. Frequent causes of this inflation include rising oil prices, raw materials, and products like cement or steel.

Spain's Borders and Territorial Disputes

Spain's national delineation involves several unique border situations and territorial disputes:

• French Border (Llívia): In the French border region, we find the enclave of Llívia, a town that belongs to Spain even though it is completely surrounded by French territory.
• United Kingdom Border (Gibraltar): Spain also shares a border with the United Kingdom at Gibraltar, which is an overseas territory of the British Crown.
• Portuguese Border (Olivenza): On the border with Portugal, Olivenza is a municipality in the province of Badajoz, near the banks of the Guadiana River, with a strong Portuguese cultural influence.
• Moroccan Border (Ceuta and Melilla): The border with the Kingdom of Morocco has several points of contact that are sources of political differences. The best-known locations are the cities of Ceuta and Melilla.