Announcements
Spain is experiencing an exceptional moment with a record in productivity that has not been seen for three decades, driven by recent innovations and economic improvements.
This growth raises questions about its durability and the structural challenges that will need to be addressed to maintain momentum through 2026.
Announcements
Analyzing the causes, challenges and strategies will be key to understanding how Spain can sustain and enhance this productive efficiency in the near future.
Record productivity growth in Spain
Productivity in Spain has achieved record growth since 2020, with an average annual increase of 1.4% in total factor productivity (TFP), its highest level in 30 years.
Announcements
This advance positions Spain as one of the most dynamic economies in the European Union, surpassing the evolution in the eurozone with growth close to zero or negative in countries such as Germany and France.
Furthermore, GDP per capita growth has been notable, with an annual increase of close to 3.78%, boosting economic recovery and dynamism after the pandemic.
Evolution of total factor productivity (TFP) since 2020
Since 2020, TFP in Spain has improved significantly thanks to greater efficiency in the use of employment and capital, and rapid technological adaptation and digitalization.
Various regions, including the Basque Country, Catalonia and Madrid, have shown growth rates in TFP above the national average, reflecting territorial disparities in productive development.
However, total productivity remains 8% below 2000 levels, evidencing a structural delay that remains to be overcome.
Contribution of productivity to GDP growth 2021-2024
Between 2021 and 2024, productivity has contributed 33% to GDP growth, highlighting its key role along with job creation and increased hours worked, which contributed the remaining 60%.
This balance indicates that, although the expansion of employment has been decisive, the improvement in productive efficiency is essential for sustainable economic growth.
Thus, productivity appears as a crucial driver to consolidate progress and overcome structural limitations of the Spanish labor and business market.
Factors that drive Spanish productivity
The recent advance in productivity responds to several factors, including better employment and capital management, as well as a strong technological and digital drive.
The post-pandemic economic recovery has favored the optimization of resources, with key regions leading these productive improvements.
This combination of structural and cyclical factors has positioned Spain in notable growth compared to other European economies.
Improvement in employment and capital efficiency after the pandemic
The pandemic accelerated labor reorganization, promoting greater efficiency in the use of employment and productive capital.
Companies and workers adapted methods, optimizing schedules and resources, which increased the total productivity of the factors after 2020.
The regions with the greatest investment in human and physical capital show greater progress, driving regional economic growth.
Impact of digitalization and technological adaptation on economic performance
Rapid digitalization has been key to improving processes and increasing productivity, facilitating business competitiveness.
Technological tools and automation made it possible to adapt to new demands and optimize the use of capital and employment.
This technological boost contributed to a stronger and more sustained recovery, directly influencing national GDP growth.
Current and structural challenges for productivity 2026
Despite growth, Spain faces challenges to maintaining productivity, such as falling performance per employee and fewer effective hours worked.
These structural challenges require attention to sustain productive progress and prevent growth from stagnating in the coming years.
Adaptation to new technologies and continuous training will be key to overcoming these limitations and strengthening the labor market.
Fall in productivity due to busyness and reduction in hours worked
Productivity per worker has shown a downward trend, influenced by a significant reduction in hours worked.
This limits the ability to produce more in unit terms, directly affecting competitiveness and the added value generated.
Managing this decline implies innovating in the organization of work and promoting efficiency, without sacrificing the quality of work life.
Salary pressures and need for investment in artificial intelligence
Pressures to raise wages can strain costs if not accompanied by technology-driven productivity improvements.
Investing in artificial intelligence and automation is essential to increase efficiency and respond to these economic challenges.
The incorporation of AI will allow processes to be optimized and imbalances reduced, guaranteeing sustainable productive growth by 2026.
Perspectives and strategies for sustainable growth
Spain must focus on strategies that promote sustainable productive growth, balancing technological innovation and human development.
The sustainability of productive progress will depend on the ability to integrate new technologies with effective training and employment policies.
A long-term vision involves strengthening key sectors and connecting regions to reduce gaps and enhance national competitiveness.
Projection of the labor market and regional economic growth
The labor market is expected to evolve with greater specialization and demand for digital skills, promoting innovative regions.
Regional economic growth will be heterogeneous, with urban areas leading by investments and technological adaptability.
The challenge will be to promote balanced development that reduces disparities and enhances synergies between territories to grow together.
Business bets on productivity based on quality, objectives and digital tools
Companies are directing their productivity towards quality, meeting clear objectives and using advanced digital tools.
The focus on results and digitalization make it possible to make processes more flexible and improve efficiency without losing customer orientation.
These bets facilitate continuous improvement and rapid adaptation to changes, key to competitiveness and future sustainability.
