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SPAIN:

ECONOMIC OUTLOOK AND RELATIONSHIPS

WITH THE CZECH REPUBLIC

Alejandro Huerta Quintero

Economic and Commercial Counsellor Spanish Embassy

Territorial Workshop Spain ICC, Prague, 11th February 2014

Spain - location and regions

• Location: South-Western Europe • Surface: 505.600 Km2 • Population: 47 million inhabitants • Cities: Madrid (3 million), Barcelona (1,7 million), Valencia, Sevilla, Bilbao, Zaragoza.

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Spain – basic macroeconomic indicators

GDP % change q-o-q: 3Q 2013: +0,1%. 4Q 2013: +0,3%. GDP % change forecast: +0,6% 2014; 0,8% 2015 GDP per inhabitant (2012): 22.300 € Unemployment: 26% (end 2013) * Public deficit (2012): 6,7% excluding financial support to banks.

Public debt: Maastricht: 60%. Comparison in EU (3Q 2013):

Italy: 132,9%. Greece: 171,8%. Portugal: 128,7%. Ireland: 124,8%.

Germany: 78,4%. France: 92,7%. United Kingdom: 89,1%.

UE-27: 86,8%. Euro-Zone: 92,7%.

Indicators 2009 2010 2011 2012 2013 GDP % y-o-y change -3,8 -0,2 + 0,1 -1,6 -1,2

Inflation (% CPI) -0,3 1,8 3,2 2,4 1,4

Public Deficit (% GDP)

11,4 9,2 8,5 10,6 * 6,5 est.

Public Debt (% GDP) 53,3 61,0 68,5 84,0 93,4 (3Q)

GDP per capita

in PPS terms (EU-28=100)

Under 50

From 50 up to 75 From 75 up to 100 From 100 up to 125 Over 125

Comparative per capita income PPS EU average (2012):

• Spain: 96% • Czech Republic: 81% • Germany: 123% • France: 109% •UK: 106% • Italy: 101% •Portugal: 76% •Poland: 67%

Spain – major economic sectors Automotive industry: 5th largest in the world.

Environment & water treatment

Machinery

IT (information technologies)

Logistics and transport infrastructure

Aerospace

Renewable sources of energy

Biotechnologies, Healthcare and Life Sciences.

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Spain – foreign trade

Foreign trade turnover (millions €): 2012: export 226.115 , import 257.946; balance -31.831. Jan.-Nov. 2013: export 215.927 , import 230.052; balance -14.125. Economy openness rate (2012) = (EXP + IMP) / GDP: 48 %.

Partner countries: Origin (Spanish imports): Germany (11%), France (10,9%), China (6,9%),

Italy (5,8%), USA (4%), United Kingdom (3,9%), Portugal (3,9%), Netherlands (3,8%), Russia (3,3%). Czech Republic (0,7%) ranks 22nd as supplier .

Destination (Spanish exports): France (16%), Germany (10%), Portugal

(7,4%), Italy (7%), United Kingdom (6,8%), USA (3,7%), Netherlands (2,9%), Belgium (2,6%), Morocco (2,3%), Turkey (2%). Czech Republic (0,7%) ranks 27th as customer .

Products (top 10): Imports: petroleum oils (crude), parts of vehicles, gas, petroleum oils (except

crude), motor cars, medicaments, telephone sets, computers, copper ores, women’s and girls suits .

Exports: motor cars, petroleum oils, parts of vehicles, goods to vessels and aircrafts, medicaments, motor vehicles for transport of goods, other aircrafts, citrus fruits, wine, pork meat.

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Spanish – Czech bilateral trade (million Euros)

Year Spanish Export Spanish Import

Spanish trade balance

2008 1.475,24 1.844,82 -369,58

2009 1.277,01 1.717,66 -440,65

2010 1.639,31 2.202,16 -562,85

2011 1.622,75 2.362,98 -740,23

2012 1.545,29 2.302,62 -757,32

2013 Jan.-Nov.

1.481,76 2.332,07 -850,31

Source: ESTACOM (Spain)

• Spanish export products: motor cars, parts of vehicles, medicaments, citrus fruits, pork meat , electric accumulators, tyres, pipes, parts of engines, tomatoes.

• Spanish import products: motor cars, parts of vehicles, combustion engines,

computers, monitors and TV sets, pumps for liquids, air conditioners, centrifuges, tyres, seats.

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Foreign direct investment in Spain by origin countries 1993-Sept.2013 (accumulated gross flows, million Euros)

Source: Spanish DATAINVEX.

ORIGIN COUNTRIES Accum. 1993-Sept.2013

Netherlands 83.912

USA 64.667

United Kingdom 56.422

Luxemburg 36.636

Italy 26.986

Germany 26.182

France 25.776

Portugal 20.742

Switzerland 9.498

Canada 9.048

Sub-total Top 10 359.868

Total 415.000

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Spanish gross investment in the Czech Republic 1993 – Sept. 2013 (million Euros)

YEARS Million Euros

1993 0,10

1994 0,59

1995 0,73

1996 3,51

1997 1,78

1998 6,34

1999 12,92

2000 9,83

2001 22,98

2002 3,51

2003 47,54

YEARS Million Euros

2004 44,81

2005 3.686,60

2006 419,06

2007 63,90

2008 48,34

2009 10,69

2010 63,20

2011 20,60

2012 52,61

2013 Jan.-Sept. 17,80

TOTAL ACCUMULATED 4.600,66

Source: Spanish DATAINVEX.

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Major Spanish companies in the Czech Republic

Main sectors and companies of the Spanish investments:

Telecommunications: TELEFÓNICA.

Automotive spare part industry: ESTAMPACIONES SABADELL, GRUPO ANTOLÍN, CIKAUTXO, KATAFORESIS, PONT AURELL Y ARMENGOL, RUBÍ CZECH, GESTAMP, etc.

Water treatment: AQUALIA (SMVAK Ostrava).

Construction: OHL ZS.

Sanitary ceramics and tiles: ROCA-LAUFEN, KERABEN

Hotels: BARCELÓ, EUROSTARS, PRESIDENT, NH

IT (information technologies): INDRA, IECISA (INFORMÁTICA EL CORTE INGLÉS)

Consumer goods: MARCA CZ

Food: VISCOFAN, ANECOOP, FÉLIX SOLÍS

Fashion: ZARA, MANGO

Spain: highlights The world’s 13th largest economy. The 5th largest economy

in the EU.

The world’s 20th largest exporter of goods.

The world’s 8th largest exporter of services.

The 11th largest investor in terms of stock worldwide.

The 12th largest recipient of FDI stock worldwide (2012).

Tourism: 2nd biggest revenues worldwide and the 1st in Europe.

Modern and large transport infrastructure network.

High technology economic sectors.

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DĚKUJEME VÁM ZA POZORNOST

Alejandro Huerta Quintero

Economic and Commercial Counsellor Spanish Embassy

Territorial Workshop Spain ICC, Prague, 11th February 2014