PESTLE Analysis of Spain

Pestle analysis of Spain. The Kingdom of Spain or Spain is a Southwestern European country situated at the Atlantic Ocean and the Strait of Gibraltar. Various islands in the Alboran Sea, the Canary Islands on the coast of North Africa, and the Balearic Islands in the Mediterranean Sea are the territories of Spain. Madrid is the capital of the country.

Spain shares the border with Portugal, the Bay of Biscay, Andorra, and France. The total area of France is 195,360 square miles, and it’s the 51st largest country in the world in terms of size and area. Approximately 47,450,795 people are populating the country, and it’s the 30th largest country worldwide.

Humans started arriving and inhabiting the country approximately 35000 years ago. The Roman Empire conquered the region in 200 BC and it fell in 400 AD. Muslims ruled Spain from 700 to 1492. Catholic Monarchs unified the country and laid the foundation of the Spanish Global Empire and it ruled from 16th to 19th century.

Spain is home to the 3rd largest number of World Heritage sites of UNESCO, and the Spanish language is the 2nd world’s natively most spoken language.

Today, we’ll discuss the pestle analysis of Spain. It’s going to analyze the macro-environmental factors of the world’s leading advanced country. Here’s the pestle analysis of Spain as follows;

Political factors affecting Spain 

Government System

Spain follows the constitutional monarchy and secular parliamentary democracy as its system of government and administration. Prime Minister and the Monarch are the head of the government and state. The country comprises 17 independent regions.


Spain has membership and alliances with the world’s most powerful organizations like G20, WTO, Schengen Area, OSCE (Organization for Security and Co-operation in Europe), NATO, Union for the Mediterranean, OEI (Organization of Ibero-American States), OECD, CoE, the Eurozone, EU, and UN.

Unstable Political Environment

Spain played a significant role in global security activities and the establishment of the EU. However, the country has an unstable political environment in the home country, which has negatively impacted the image of the country. Some politicians of the semi-independent region, of Catalonia, want to become independent from the country.

The whole independence movement has destabilized the country’s political environment. It resulted in the form of imprisonment of Catalonian politicians, clashes, protests, and campaigns for independence. The government and the monarch should dissolve the situation.


Spain has been facing serious issues of corruption. A very high-profile case of corruption has come to light for the past 5 years. Her fiscal deficit is also very high, which means that the government is spending more and earning lower. It’s because of the corruption and mismanagement policies.

Economical factors affecting Spain 


According to an estimate, the annual nominal GDP of Spain in 2021 was 1.450 trillion dollars; it’s the 13th world’s highest. Out of which, the per capita of the country was 31,178 dollars, and it’s the 26th world’s highest.

Economic Challenges

Spain had faced a severe economic crisis from 2007 to 2014 when millions of people became unemployed and wages dropped. The country is still recovering from the crisis. However, the pandemic has further increased the unemployment rate from 15.5% to 17.4% in 2021.

It’s the highest unemployment rate among the European countries. When people don’t have jobs, it means that the poverty level is high. The demand for consumer products is also high because of the increasing export rate.


Electricity, energy, agriculture, manufacturing, and tourism are some of the leading industries of Spain, and they play a huge role in the country’s economy. She exports products to ItalyGermanyFrance, and many other countries.

Spain’s main imports are chemicals, machinery, and consumer goods. She imports it from China, France, and Germany. The country’s tax rate starts from 19% to 47% depending upon the income level of a person and a business in 2021.

Social factors affecting Spain 


Spaniards is the synonymous word for the people of Spain. They’re more amiable, kind, friendly talkative than most other Europeans. Spanish, Euskera, Gallego, Valencian, and Catalan are the main spoken languages in the country.

Approximately 62% of the people believe in Christianity, 34% are non-religious, and 3% follow others. The average life of men and women in Spain is 79 and 85 years old. The country has a lower living cost and a beautiful climate.

Social Issues

Spanish society is also going through some social challenges. Like the increasing gap between rich and poor class, drug addiction, little credit, limited income level, child poverty, declining healthcare system, and increasing aging people.


Spain is surprisingly equally split between men and women with a ratio of 50:50. Approximately 85% of the people are Spaniard, and the remaining 15% are immigrants from other countries. The country has a unique culture and its people follow a different lifestyle. People often celebrate catholic holidays in the country.  

Technological Factors Impacting Spain

Developed Country

Spain falls under the category of the world’s most developed country. She’s the first country in Europe that start issuing electronic identity cards. However, Spanish tech companies are keeping up the same pace with the world’s innovative technology.

The country has made a significant contribution in mobile technology, communication systems, civil engineering, renewable energy, international security systems, and traffic control systems both air and road.

Usage of Social Media

Spaniards are highly active on the world’s leading social media platforms like Tuenti, TikTok, Reddit, YouTube, Twitter, Pinterest, Instagram, Facebook, and others. However, the country has limited tech professionals, and a majority of them belong to other countries.

Legal factors affecting Spain 


The legal and judiciary system of Spain is the same as many other European countries. I mean she has strict data protection and copyrights laws. However, the country follows a tight chain of command and bureaucratic system. It results in the form of many formalities if a firm wants to do business in the country.

Many critics have questioned the Spanish judicial system during the Catalonian political conflict. However, discrimination is against the law, and employees have a right to privacy. An employee can’t work over 9 hours a day unless there’s an agreement, and a working week comprises 40 hours.

Environmental factors affecting Spain 

Environmental Issues

Spain is facing some of the main environmental challenges like loss of public spaces, abusing natural resources, noise pollution of airplanes and ships, deforestation, water pollution, and air pollution. They’re jeopardizing the peaceful environment of the country.


The Spanish tourism industry has made a worldwide reputation because of the sunniest country in Europe. Some of her top tourist destinations are mountains, beaches, ancient sites, great Alhambra, Malaga, Seville, Valencia, Madrid, and Barcelona. According to an estimate, approximately 11% of the country’s revenue is from its tourism industry.

Conclusion: Spain PESTLe Analysis Example Country

After a careful study of the pestle analysis of Spain, we’ve concluded that Spain is indeed the world’s most beautiful and leading developed country. The increasing unemployment, aging population, and environmental challenges are some of the main issues. Spain should increase the FDI and promote businesses to address these issues; while paying heed to the external political, economical, social, technological, legal, and environmental factors impacting the company.

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