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Spain: a Success Story Shadowed Only By a Poor Productivity Performance

Since joining the European Union in 1986, the performance of the Spanish economy has been quite remarkable, acting as a good example for new entrants of what can be accomplished in twenty years. Its ability to generate employment has been astonishing. Departing from an environment of very high unemp...

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Published in:National Institute economic review 2007-04, Vol.200 (1), p.87-95
Main Authors: Mas, Matilde, Quesada, Javier
Format: Article
Language:English
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description Since joining the European Union in 1986, the performance of the Spanish economy has been quite remarkable, acting as a good example for new entrants of what can be accomplished in twenty years. Its ability to generate employment has been astonishing. Departing from an environment of very high unemployment (close to 25 per cent), Spain has become the country of destination most preferred by immigrants. However, it has also had a scant productivity performance. The main burden on productivity growth lies with the construction sector and almost all private service sectors with the unique exception of the financial sector. Most likely, over the next years, the continuity of the Spanish success will require a reversal of the sources of growth, shifting from labour creation to improvements in multifactor productivity.
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title Spain: a Success Story Shadowed Only By a Poor Productivity Performance
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