Oriol Aspachs (Caixabank Research) | There are still few large companies in Spain, especially when compared to the major developed countries. This is undoubtedly one of the main reasons why the productivity of the Spanish economy remains relatively low. In other words, this is one of the main reasons why GDP per capita in Spain, or many Spaniards’ purchasing power, remains far from the benchmark countries. Will COVID succeed where economists have failed?
CaixaBank Research | New technologies have indeed favoured the growth of Spain’s labour productivity in the past and that they could do so again in this new technological era we are entering. An initial analysis of the relationship between the degree of penetration of new technologies and labour productivity shows that there is a positive correlation between the growth of the two variables in the past 20 years. In addition, this correlation appears to be more pronounced among economic activities in the services sector.
Spain is the country most affected by the decline in productivity due to the Covid-19 pandemic because its economy is more vulnerable. The reason is it depends on the most affected sectors, like tourism, hotels and restaurants, having fewer manufacturing companies, according to a recent article in the European Central Bank’s Economic Bulletin. The article analyses the impact of the Covid-19 pandemic on the productivity of German, French, Italian and Spanish companies.
The problem in Spain’s economy: it’s that productivity is hardly apparent in the breakdown of GDP between the amount of work (number of hours worked) and the residue, which is productivity.
THE CORNER OP-ED | By Ana Fuentes | A parliamentary commission in Spain has recommended that the country puts its clocks back an hour to rationalize working days, starting at 9am and ending at 5pm. And, against what many foreigners think, the aim is not to have more time for naps nor nightlife: most Spaniards still work during their lunch break but don’t get home until 8 or 9. (For the record, they don’t all dance flamenco either.)