The Basque Country (pdf, 4,3Mb) - Kultura Saila - Euskadi.net

5. THE ECONOMY
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The state of a countryʼs economy is measured by the changes
in Gross Domestic Product (GDP) and the level of equality, as
measured by the distribution across different sectors of society.
5.1. Production and distribution: basic
notions
Production is the result of the economic activity of a person,
business or country. Domestic production is considered gross
when no other concepts are taken into consideration; the
term net is used when we subtract the cost of manufacturing
products. GDP (Gross Domestic Product) is the total value of
all of the good and services produced in a country during a
specific period of time.
Per capita income is the average income per person in a country.
It is used to measure the overall wealth of a nation. It is calculated
by dividing the total income by the number of inhabitants.
Price is the amount of money that has to be paid to acquire a
given good or service. The rise or fall in prices is measured by the
Consumer Price Index (CPI), thus reflecting the cost of living.
Role of the public sector
The system of Public Administration and the public sector is
decisive in the economy: it collects taxes, invests and spends
money on roads, airports, schools, health services and security,
among others. It uses laws and decrees to regulate general
economic conditions, and oversees activities and prices connected
with basic goods and markets.
The basic functions of the public sector are:
• Effective and democratic use of resources.
• Economic stability.
• Distribution of income.
• Economic development.
Entrance to the BEC
(Bilbao .Exhibition Center).
Baracaldo, Bizkaia.
The economy of Euskadi has improved significantly in the past
decade. Per capita income rose from 89.62% of the European Union
average in 1990 to 125% in 2006. Spending on social services,
however, is below the EU average.
Laser cutting at Robotiker (above); Tubos Reunidos (centre); and
Bodegas Ysios winery in Laguardia, Alava-Araba (below).