Spain's powerful world empire of the 16th and 17th centuries ultimately yielded command of the seas to England. Subsequent failure to embrace the mercantile and industrial revolutions caused the country to fall behind Britain, France, and Germany in economic and political power. Spain remained neutral in World Wars I and II but suffered through a devastating civil war (1936-39). A peaceful transition to democracy following the death of dictator Francisco FRANCO in 1975, and rapid economic modernization (Spain joined the EU in 1986) have given Spain one of the most dynamic economies in Europe and made it a global champion of freedom. Continuing challenges include Basque Fatherland and Liberty (ETA) terrorism and relatively high unemployment.

Geography

Location: Southwestern Europe, bordering the Bay of Biscay, Mediterranean Sea, North Atlantic Ocean, and Pyrenees Mountains, southwest of France

Area: total: 504,782 sq km; land: 499,542 sq km; water: 5,240 sq km; note: there are two autonomous cities - Ceuta and Melilla - and 17 autonomous communities including Balearic Islands and Canary Islands, and three small Spanish possessions off the coast of Morocco - Islas Chafarinas, Penon de Alhucemas, and Penon de Velez de la Gomera

Land boundaries: total: 1,917.8 km

border countries: Andorra 63.7 km, France 623 km, Gibraltar 1.2 km, Portugal 1,214 km, Morocco (Ceuta) 6.3 km, Morocco (Melilla) 9.6 km

Coastline: 4,964 km

Climate: temperate; clear, hot summers in interior, more moderate and cloudy along coast; cloudy, cold winters in interior, partly cloudy and cool along coast

Terrain: large, flat to dissected plateau surrounded by rugged hills; Pyrenees in north

Elevation extremes: lowest point: Atlantic Ocean 0 m
highest point: Pico de Teide (Tenerife) on Canary Islands 3,718 m

Natural resources: coal, lignite, iron ore, copper, lead, zinc, uranium, tungsten, mercury, pyrites, magnesite, fluorspar, gypsum, sepiolite, kaolin, potash, hydropower, arable land

People

Population: 40,448,191 (July 2007 est.)

Net migration rate: 0.99 migrant(s)/1,000 population (2007 est.)

Life expectancy at birth: total population: 79.78 years;
male: 76.46 years; female: 83.32 years (2007 est.)

Ethnic groups: composite of Mediterranean and Nordic types

Religions: Roman Catholic 94%, other 6%

Languages: Castilian Spanish (official) 74%, Catalan 17%, Galician 7%, Basque 2%, are official regionally

Government

Government type: parliamentary monarchy

Capital: Madrid

Administrative divisions: 17 autonomous communities (comunidades autonomas, singular - comunidad autonoma)and 2 autonomous cities* (ciudades autonomas, singular - ciudad autonoma); Andalucia, Aragon, Asturias, Baleares (Balearic Islands), Ceuta*, Canarias (Canary Islands), Cantabria, Castilla-La Mancha, Castilla y Leon, Cataluna, Comunidad Valenciana, Extremadura, Galicia, La Rioja, Madrid, Melilla*, Murcia, Navarra, Pais Vasco (Basque Country) note: the autonomous cities of Ceuta and Melilla plus three small islands of Islas Chafarinas, Penon de Alhucemas, and Penon de Velez de la Gomera, administered directly by the Spanish central government, are all along the coast of Morocco and are collectively referred to as Places of Sovereignty (Plazas de Soberania)

chief of state: King JUAN CARLOS I (since 22 November 1975); Heir Apparent Prince FELIPE, son of the monarch, born 30 January 1968

head of government: President of the Government (Prime Minister equivalent) Jose Luis RODRIGUEZ ZAPATERO (since 17 April 2004); First Vice President and Deputy Prime Minister (and Minister of the Presidency) Maria Teresa FERNANDEZ DE LA VEGA (since 18 April 2004) and Second Vice President (and Minister of Economy and Finance) Pedro SOLBES (since 18 April 2004)

Economy

The Spanish economy boomed from 1986 to 1990 averaging 5% annual growth. After a European-wide recession in the early 1990s, the Spanish economy resumed moderate growth starting in 1994. Spain's mixed capitalist economy supports a GDP that on a per capita basis is 80% that of the four leading West European economies. The center-right government of former President AZNAR successfully worked to gain admission to the first group of countries launching the European single currency (the euro) on 1 January 1999. The AZNAR administration continued to advocate liberalization, privatization, and deregulation of the economy and introduced some tax reforms to that end. Unemployment fell steadily under the AZNAR administration but remains high at 8.1%. Growth averaging 3% annually during 2003-06 was satisfactory given the background of a faltering European economy. The Socialist president, RODRIGUEZ ZAPATERO, has made mixed progress in carrying out key structural reforms, which need to be accelerated and deepened to sustain Spain's strong economic growth. Despite the economy's relative solid footing significant downside risks remain including Spain's continued loss of competitiveness, the potential for a housing market collapse, the country's changing demographic profile, and a decline in EU structural funds.

Labor force: 21.77 million (2006 est.)

Labor force - by occupation: agriculture: 5.3%; industry: 30.1%; services: 64.6% (2004 est.)

Unemployment rate: 8.1% (October 2006 est.)

Industries: textiles and apparel (including footwear), food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, machine tools, tourism, clay and refractory products, footwear, pharmaceuticals, medical equipment

information courtesy The World Factbook Spetember 2007