Oecd Economic Surveys: Spain 2021 © Oecd 2021
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OECD Economic Surveys Spain OVERVIEW http://www.oecd.org/economy/spain-economic-snapshot/ 2021 Spain This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. OECD Economic Surveys: Spain© OECD 2021 You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgement of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to [email protected]. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at [email protected] or the Centre français d’exploitation du droit de copie (CFC) at [email protected] of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 3 Basic statistics of Spain, 2020 (Numbers in parentheses refer to the OECD average)1 LAND, PEOPLE AND ELECTORAL CYCLE Population (million, 2019) 47.1 Population density per km² (2018) 93.7 (38.0) Under 15 (%, 2019) 14.6 (17.9) Life expectancy at birth (years, 2018) 83.4 (80.1) Over 65 (%, 2019) 19.6 (17.1) Men (2018) 80.7 (77.5) International migrant stock (% of population, Women (2018) 86.3 (82.8) 2019) 13.1 (13.3) Latest 5-year average growth (%) 0.3 (0.6) Latest general election November 2019 ECONOMY Gross domestic product (GDP) Value added shares (%, 2019) In current prices (billion USD, 2019) 1 393.5 Agriculture, forestry and fishing 2.9 (2.6) In current prices (billion EUR, 2019) 1 244.8 Industry including construction 22.3 (26.8) Latest 5-year average real growth (%) 2.8 (2.2) Services 74.8 (70.5) Per capita (000 USD PPP, 2019) 43.5 (49.4) GENERAL GOVERNMENT Per cent of GDP Expenditure (2019) 42.1 (40.6) Gross financial debt (2019, OECD: 2018) 117.3 (107.5) Revenue (2019) 39.2 (37.5) Net financial debt (2019, OECD: 2018) 82.8 (67.7) EXTERNAL ACCOUNTS Exchange rate (EUR per USD, 2019) 0.89 Main exports (% of total merchandise exports, 2019) PPP exchange rate (USA = 1, 2019) 0.61 Machinery and transport equipment 31.2 In per cent of GDP Manufactured goods 14.3 Exports of goods and services (2019) 34.9 (54.2) Chemicals and related products, n.e.s. 13.5 Imports of goods and services (2019) 31.9 (50.6) Main imports (% of total merchandise imports, 2019) Current account balance (2019) 2.1 (0.4) Machinery and transport equipment 30.5 Net international investment position (2019) -74.6 Chemicals and related products, n.e.s. 14.5 Miscellaneous manufactured articles 13.5 LABOUR MARKET, SKILLS AND INNOVATION Employment rate (aged 15 and over, %, 2019) 49.8 (57.6) Unemployment rate, Labour Force Survey 14.1 (5.4) (aged 15 and over, %, 2019) Men (2019) 55.6 (65.6) Youth (aged 15-24, %, 2019) 32.6 (11.7) Women (2019) 44.3 (50.0) Long-term unemployed (1 year and over, 5.3 (1.4) %, 2019) Participation rate (aged 15 and over, %, 2019) 58.6 (61.1) Tertiary educational attainment (aged 25-64, 38.6 (38.0) %, 2019) Average hours worked per year (2019) 1,686 (1,726) Gross domestic expenditure on R&D (% of 1.2 (2.6) GDP, 2018) ENVIRONMENT Total primary energy supply per capita (toe, 2019) 2.6 (3.9) CO2 emissions from fuel combustion per 4.9 ( 8.3) capita (tonnes, 2019) Renewables (%, 2019) 14.7 (10.8) Water abstractions per capita (1 000 m³, 2016) 0.7 Exposure to air pollution (more than 10 μg/m³ of PM 47.1 (61.7) Municipal waste per capita (tonnes, 2018) 0.5 (0.5) 2.5, % of population, 2019) SOCIETY Income inequality (Gini coefficient, 2018, OECD: 0.330 (0.310) Education outcomes (PISA score, 2018) 2016) Relative poverty rate (%, 2018, OECD: 2016) 14.2 (11.5) Reading (2015, OECD: 2018) 496 (487) Median disposable household income (000 USD 23.9 (25.0) Mathematics 481 (489) PPP, 2018, OECD: 2016) Public and private spending (% of GDP) Science 483 (489) Health care (2019) 9.0 (8.8) Share of women in parliament (%, 2019) 44.0 (30.7) Pensions (2017) 11.4 (8.6) Net official development assistance (% of 0.2 GNI, 2017) Education (% of GNI, 2018) 4.0 (4.5) 1. Where the OECD aggregate is not provided in the source database, a simple OECD average of latest available data is calculated where data exist for at least 29 member countries. Source: Calculations based on data extracted from the databases of the following organisations: OECD, International Energy Agency, World Bank, International Monetary Fund and Inter-Parliamentary Union. OECD ECONOMIC SURVEYS: SPAIN 2021 © OECD 2021 4 Executive Summary OECD ECONOMIC SURVEYS: SPAIN 2021 © OECD 2021 5 The pandemic caused an Table 1. The recovery is gathering pace unprecedented economic recession 2019 2020 2021 2022 Gross domestic product 2.0 -10.8 5.9 6.3 Economic policies reacted in a timely manner Unemployment rate (%) 14.1 15.5 15.4 14.7 to the crisis, but the recovery will pick up Fiscal balance (% of GDP) -2.9 -11.0 -8.6 -5.4 from the second half of 2021. The pandemic has hit the society and Public debt 95.5 120.0 119.7 117.4 (Maastricht, % of GDP) economy hard (Figure 1). The large economic contraction of 10.8% in 2020 reflects strict Source: OECD Economic Outlook (database). containment measures, but also structural Policy support should be pursued until the features that made the Spanish economy more recovery is firmly underway, but become vulnerable. These include the importance of more targeted. Accommodative ECB policy and tourism, high prevalence of small and medium the extensions of the terms of the loan sized enterprises and the widespread use of guarantees continue to support firm liquidity. The temporary contracts. recently announced direct aid to firms, which Figure 1. The pandemic hit the Spanish suffer from financial difficulties solely due to economy hard COVID-19, but are likely to return to profitability Real GDP, Index 2019Q4=100 in the future, should be executed swiftly. Speedy 105 restructuring of viable firms in temporary distress 100 can prevent their unwarranted liquidation, and should be facilitated out of courts to avoid lengthy 95 proceedings. Elements of the current labour 90 market regulation, such as priority of firm-level Spain 85 agreements, which enable firms to rapidly adapt Germany to changing conditions, will also be crucial to 80 France Italy support the recovery. 75 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 2021Q1 Source: OECD Economic Outlook (database). A durable recovery requires boosting StatLink 2 https://doi.org/10.1787/888934232124 employment, while containing The government support of around 20% of medium-term fiscal challenges GDP (including guarantees and indirect The crisis has exacerbated pre-existing measures) mitigated the negative impact of challenges. Addressing structural issues in the crisis. The increase in unemployment was labour markets can help lower inequalities, cushioned by the short-time work scheme, which were already high before the pandemic reaching 23% of salaried workers at the peak of (Figure 2), and contain medium-term fiscal the crisis. Around 90% of the available loan challenges. guarantees were utilised in March 2021. Figure 2. Inequality remains high Uncertainty regarding the outlook is very Gini disposable income1, 2018 or latest available year high. GDP is projected to rebound from the 0.40 second half of 2021, as the gradual deployment 0.35 of vaccines enables the release of pent-up 0.30 demand, tourism gradually recovers and the 0.25 national recovery plan supports activity (Table 1). 0.20 While domestic demand can be stronger than 0.15 expected, a potential increase in insolvencies 0.10 once policy support is phased out poses a strong 0.05 downward risk and may increase non-performing 0.00 DNK DEU FRA ESP ITA GBR loans. 1. Post taxes and transfers. Source: OECD Income Distribution database. StatLink 2 https://doi.org/10.1787/888934232143 OECD ECONOMIC SURVEYS: SPAIN 2021 © OECD 2021 6 The use of Next Generation EU funds should The effects of rapid and large increases in the prioritise reforms that enhance long-term minimum wage on employment, especially of growth. Swift absorption of the funds can also the youth and the low-skilled, should be support the near-term recovery. A governance evaluated. The process of setting minimum system including different levels of government wages could be revised to include a permanent has been put in place. Continued efforts will be and independent Commission, mandated to required to tackle potential implementation evaluate its potential impact and provide challenges. recommendations to allow gradual changes in the minimum wage in line with changing labour The pandemic hit disproportionately hard market conditions and productivity. young, low-skilled, and temporary workers (Figure 3). Improving the efficiency of active In the context of a weakened economy, fiscal labour market policies will be an important tool to consolidation should only be gradual not to reskill and enhance the employability of derail the recovery.