Sib650

3. Economic and commercial factors:

□ Name of the local currency

Euro

The official currency used in Spain since 2002 has been the Euro. The Euro is the official currency of Spain and twelve other European countries including neighboring France and Portugal.

□ Exchange rate between the country’s currency and CDN dollar as at the time of the project

1.00 Canadian Dollar(s) = 0.80 European Euro(s), at an exchange rate of 0.8026 (using nominal rate).

□ Stability of the local currency

A key strength of the euro is currency stability. Businesses no longer face risk from currency exchange rates and tourists no longer pay the price of currency conversion. Rising costs (inflation) are kept at bay because countries must maintain a low inflation rate in order to join. Furthermore, because the euro inextricably links the economies of its members, the currency provides a disincentive for countries to go to war with the other.

□ GNP or GDP in the last 2 years

GDP (purchasing power parity):

$1.411 trillion (2011 est.)

country comparison to the world: 14

$1.4 trillion (2010 est.)

GDP - real growth rate:

0.8% (2011 est.)

country comparison to the world: 192

-0.1% (2010 est.)

□ Trade balance in the last two years

Spain reported a trade deficit equivalent to 3250 Million EUR in April of 2012, trade deficit equivalent to 4000 Million EUR in April of 2011 and trade deficit equivalent to 4600 Million EUR in April of 2010.Historically, from 1991 until 2012, Spain Balance of Trade averaged -3686.2 Million EUR reaching an all-time high of -539.1 Million EUR in January of 1994 and a record low of -9834.8 Million EUR in December of 2007. Spain major exports are: wine, machinery, motor vehicles and foodstuffs. Spain imports mainly machinery and equipment, fuels, chemicals, semi-finished goods, foodstuffs and consumer goods. The EU accounts for 70 percent of Spain's exports and 59 percent of imports, the most important trading partners being France and Germany.

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