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| Spain has one of the most efficient, profitable and solvent banking systems. Above, Bank of Spain´s headquarters.
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In the last 14 years, Spain has g rown at a higher and more stable rate than its neighbours, which has allowed its per capita income to converge with that of the Eurozone. In the last 10 years the Spanish per capita income increased by 16.4% to reach 97% of the Eurozone average in 2007. Spain's the eight largest source of international direct investment Spain has developed a number of imbalances throughout this long period of expansion, but today its economy is more solid and competitive than it was 15 years ago as the consequence of at least ten factors: 1. The amount of capital in the economy has increased greatly over these years. The external deficit is not due to a fall in savings, but to the fact that investment has been very high, and not only in housing. 2. Private sector indebtedness ref lects an even greater increase in asset s, meaning that the net wealth of families and companies has improved substantially. 3. Spai n has one of the most efficient, profitable and solvent banking sys tems in the world, with a regulator that is internationally- recognised as a reference. 4. Spain has well-administered public finances. Public debt is low and the fiscal accounts have margin for manouvre. 5. Spain is aware of the need to improve its competitiveness and has been fostering investment in RD&I for a number of years; it has strengthened its presence in new market s and, in addition, has exerted much effort in making its labour market more flexible and liberalising key markets such as energy and telecommunications. 6. Despite the drive by emerging economies, our expor ts have maintained their share in world trade. 7. In addition, it has an extraordinarily competitive tourism sector (second in the world by visitors and income), which shows little vulnerability to competition from emerging countries. 8. Spain has some of the most respected financial and non-f inancial mult inat ional companies. We are leaders in sectors such as infrastructure concessions, wind energy, desalination technology, clothing (with ext remely innovat ive distribution, design and marketing techniques), telecommunications, energy and banking. 9. Moreover, Spain has become the eighth largest source of international direct investment in the world, focused mainly on Europe the US and Latin America. 10. Spain has received an enormous influx of immigrants which, in addition to its direct benefits, has decisively helped to increase the presence of women in the labour market. The increase in the female participation rate is unprecedented and has substantially transformed the country. In short, the story of Spain in the last 30 years is one of success. Better than anyone, Spain has been able to make the most of all the benefits of belonging to the European M o n e t a r y Union; it has taken advantage of a low-interest and economically-stable environment, and has directed the EU funding it has received towards productive investment in infrastructure. The political, social and economic transformation that has taken place in Spain over the last two decades has been unmatched. Spain's economy have successfully face each and every difficult stage Spain now faces a more difficult stage, as do many countries in the region, partly owing to external reasons, such as the international financial crisis or the rise in the cost of raw materials, and partly to domestic factors, which are the consequence of an inevitable adjustment following fourteen years of strong growth and profound structural change. There is no doubt that Spain will grow at a moderate rate in 2008/2009. However, our economy is characterised by having successfully faced each and every one of the challenges of recent decades. Spain has e x pe r ienc e d an intense modernisation process which has left it being better prepared now to respond to external shocks on a better footing than in the past, and to move forward with strength. Por Alejandra Kindelán Subdirectora General Adjunta Grupo Santander
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