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Traditionally an agricultural country, Spain produces large crops of wheat, sugar beets, barley, tomatoes, olives, citrus fruit, grapes, and cork. Spain is the world's largest producer of olive oil and Europe's largest producer of lemons, oranges, and strawberries. The best-known wine regions are those of Rioja, in the upper Ebro valley, and of MAlaga and Jerez de la Frontera, in Andalusia. Agriculture is handicapped in many regions by lack of mechanization, by insufficient irrigation, and by soil exhaustion and erosion.
The major industries produce textiles, iron and steel, and chemicals. Motor vehicles, diesel and electric motors, and machinery are manufactured, in addition to a variety of consumer goods such as shoes, toys, radios, televisions, and home appliances. There are also beverage and tobacco industries. Industries are concentrated chiefly in the Madrid region; in Valladolid; in Catalonia, which has large textile, automotive parts, and electronics manufactures; in Valencia; and in Asturias and the Basque country, where the rich mineral resources of the Cantabrian Mts. (iron, coal, and zinc) are exploited. Copper is mined extensively at RIo Tinto; other mineral resources include lead, silver, tin, and mercury. Petroleum is found near Burgos. Fishing, notably for sardines, tuna, cod, and anchovies, is an important source of livelihood, especially on the Atlantic coast, and fish canning is a major industry. Tourism is Spain's greatest source of income.
Overland communications are generally poor. Most Spanish railroads, unlike those of the rest of Western Europe, use broad-gauged tracks, although some regional systems consist of narrow-gauge railways. In 1992 a high-speed standard-gauge railway connecting Madrid and Seville began operation.
Spain has made great economic progress in recent decades, but it still lags behind most of Western Europe. Though industry has grown considerably since the 1950s, the country still has a large trade imbalance. Spain's greatest trade is with the United States, Germany, France, and Great Britain. Among the leading exports are fruit, wine, and other food products, ships, footwear, machinery, and chemicals; major imports include machinery, petroleum, iron and steel, and transport equipment.
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