Spain’s capitalist mixed economy is the 14th largest worldwide and the 4th largest in the European Union, as well as the Eurozone’s 4th largest.

The centre-right government of former prime minister José María Aznar worked successfully to gain admission to the group of countries launching the euro in 1999. Unemployment stood at 17.1% in June 2017, below Spain’s early 1990s unemployment rate of at over 20%. The youth unemployment rate (35% in March 2018) is extremely high compared to EU standards. Perennial weak points of Spain’s economy include a large informal economy, and an education system which OECD reports place among the poorest for developed countries, along with the United States.

By the mid-1990s the economy had commenced the growth that had been disrupted by the global recession of the early 1990s. The strong economic growth helped the government to reduce the government debt as a percentage of GDP and Spain’s high unemployment rate began to steadily decline. With the government budget in balance and inflation under control Spain was admitted into the Eurozone in 1999.

Since the 1990s some Spanish companies have gained multinational status, often expanding their activities in culturally close Latin America. Spain is the second biggest foreign investor there, after the United States. Spanish companies have also expanded into Asia, especially China and India. This early global expansion is a competitive advantage over its competitors and European neighbours. The reason for this early expansion is the booming interest towards Spanish language and culture in Asia and Africa and a corporate culture that learned to take risks in unstable markets.

Spanish companies invested in fields like renewable energy commercialisation (Iberdrola was the world’s largest renewable energy operator), technology companies like Telefónica, Abengoa, Mondragon Corporation (which is the world’s largest worker-owned cooperative), Movistar, Hisdesat, Indra, train manufacturers like CAF, Talgo, global corporations such as the textile company Inditex, petroleum companies like Repsol or Cepsa and infrastructure, with six of the ten biggest international construction firms specialising in transport being Spanish, like Ferrovial, Acciona, ACS, OHL and FCC.

In 2005 the Economist Intelligence Unit’s quality of life survey placed Spain among the top 10 in the world. In 2013 the same survey (now called the “Where-to-be-born index”), ranked Spain 28th in the world.

In 2010, the Basque city of Bilbao was awarded with the Lee Kuan Yew World City Prize, and its mayor at the time, Iñaki Azkuna, was awarded the World Mayor Prize in 2012. The Basque capital city of Vitoria-Gasteiz received the European Green Capital Award in 2012.