FAKE products are costing Spanish businesses the equivalent of 10.6% of sales, a new report has found.

At least €6.7 billion worth of sales are lost in Spain each year to counterfeit goods, according to the report by the European Union Intellectual Property Office (EUIPO).

According to the latest EUIPO data, the global trade in fake goods rose to €452.9 billion in 2016, representing 3.3% of world trade.

In the previous report, based on data from 2013, the figure was €338 billion, or 2.5%.

The fashion industry is the worst hit, with losses totalling €28.4 billion in Europe (9.4% of total turnover).

Pharmaceuticals are the second hardest-hit, suffering losses of €9.6 billion, followed by cosmetics on €7 billion.

Counterfeit wines and spirits cost companies 5.9% of their business or €2.4 billion.

The impact of fake products is worse in Spain than the EU average in several sectors.

The country’s fashion industry sees 14.9% of sales lost to counterfeit goods, pharmaceuticals 4.5%, wines and spirits 8.3% and smartphones 10%.

In real terms, analysts say it costs the EU 480,000 jobs, which in turn leaves the bloc missing €16 billion a year in tax revenue.

Across the EU, the total economic impact of fake products is estimated at around €92 billion.

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