Announcements
Productivity in Spain has reached a historical record after years of stagnation, showing a significant recovery since 2020.
This advance opens a new economic stage that, however, faces crucial structural challenges to sustain its growth.
Announcements
Analyzing the current productive panorama and the prospects until 2026 is key to understanding the opportunities and risks facing the country.
Record growth in Spanish productivity
Since 2020, total factor productivity (TFP) in Spain has grown at an annual rate of 1.4%, the highest in three decades, surpassing countries such as Germany and France.
Announcements
This advance reflects structural improvements in capital and labor efficiency, driven by digitalization and adaptation following the COVID-19 pandemic.
Record productivity growth is key to enhancing the country's competitiveness and economic preparation for the future.
Evolution of total factor productivity since 2020
The TFP has improved markedly since 2020, evidencing greater efficiency in the joint use of capital and labor in the Spanish economy.
This progress responds to the technological impulse and changes in production processes focused on innovation and digital transformation.
Spain stands out in the eurozone for this productive recovery, leaving behind stagnations or setbacks observed in other countries.
Impact on GDP and recent job creation
Total factor productivity has contributed 33% to GDP growth between 2020 and 2024, while job creation contributed 60%.
The increase of 2.4 million workers drove GDP per capita growth among the highest in Europe in this period.
This combined dynamism of productivity and employment has strengthened economic expansion and labor well-being in Spain.
Structural challenges and current paradoxes
Although productivity shows a record, the outlook presents structural challenges that could limit its long-term sustainable growth.
There are paradoxes such as technological improvements along with a growing shortage of talent and fiscal pressures that hinder productive progress.
These factors create uncertainty about the ability to maintain the current pace of improvement in a complex global economic context.
Projected productivity drops for 2025 and 2026
Forecasts point to a slowdown and possible decline in total factor productivity in 2025 and 2026, following recent strong growth.
This projected decline poses challenges for competitiveness and the need to implement policies that drive innovation and efficiency.
Without strategic interventions, Spain could face a slowdown that affects its economic growth and standard of living.
Gaps with respect to historical levels and comparison with the eurozone
Despite the progress, Spain maintains significant gaps with its historical maximum levels and has not yet equaled the average productivity of the eurozone.
The difference reflects structural limitations and a less homogeneous recovery in certain key sectors of the Spanish economy.
Reducing these gaps is essential to consolidate Spain's position in the European economic scenario in the future.
Key factors behind the improvement and pending obstacles
The improvement in productivity is based on technological advances and economic adaptations, but challenges persist that condition its continuity.
Structural obstacles such as limited investment and lack of specialized talent threaten the sustainability of growth.
To address these challenges, it is vital to promote policies that integrate innovation with greater efficiency and capacity development.
Innovation, digitalization and post-COVID adaptation
Innovation and digitalization have been pillars in the productive recovery after the pandemic, facilitating new models and work processes.
This adaptation has made it possible to optimize resources and improve competitiveness, although its extension is still unequal between sectors.
Promoting persistent technological integration is key to consolidating productivity and responding to global market changes.
Insufficient investment, talent shortage and fiscal pressures
Investment in capital and technology has not yet reached optimal levels to sustain long-term growth in productivity.
The shortage of qualified talent limits the capacity for innovation, affecting competitiveness in advanced economies.
Furthermore, high tax burdens generate distortions that discourage investment and complicate continuous improvement.
Opportunities and strategies to boost productivity in 2026
To boost productivity, Spain must take advantage of digitalization and promote technological innovation in all productive sectors.
It is essential to implement policies that encourage continuous training and the development of specialized talent in key areas.
Likewise, improving fiscal efficiency and promoting strategic investment will favor sustainable and competitive growth.
New work models: reduction of working hours and remote work
Reducing the working day can increase motivation and well-being, contributing to greater individual productivity.
Remote work, driven by post-COVID adaptation, allows resources to be optimized and work flexibility to be increased.
Combining these models requires clear regulations and supporting technologies to maximize your productive benefits.
International references and future projections
Leading countries in productivity combine technological innovation with high levels of human capital and favorable fiscal conditions.
Projections indicate that Spain must follow these practices to avoid falling behind advanced economies.
Investing in digitalization, education and labor reforms will be key to maintaining the pace of productive growth in 2026.
