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TFP in Spain accelerated sharply in the 2nd quarter of 2025, with a 1.4% increase—matching the annual growth rate of 2024 and outperforming the previous two quarters

Now available new update of BBVA Foundation and Ivie's Productivity Tracker database, covering data through June 2025

Total factor productivity (TFP)—a synthetic indicator of productive efficiency—increased by 1.4% year-on-year in the second quarter of 2025, a rate similar to that recorded for the whole of 2024. Nearly half (48.8%) of GDP growth in the second quarter of 2025 (2.9%) can be attributed to improvements in productive efficiency (TFP), while the contributions of job creation and capital declined compared to previous quarters (28.6% and 22.6%, respectively).

After two consecutive quarters of deceleration, the virtuous pattern of economic growth driven by improvements in productive efficiency regains momentum in the second quarter of 2025.

The labor market showed less dynamism, with hours worked increasing at a slower pace (1.3% year-on-year), while investment accelerated (5.5%) in the second quarter of 2025. Labor productivity (per hour worked) increased by 1.7% and capital productivity by 0.9%, both accelerating compared to the previous quarter.

The rise in TFP during the second quarter of 2025 was particularly strong in services (1.6%), especially in trade, transport, and hospitality (3.1%) and professional, scientific, and technical activities (1.8%). Growth was more moderate, though still notable, in energy (1.4%). In manufacturing and construction, TFP increased by 0.7%, while in agriculture it declined by 1%, interrupting the upward trend observed in previous quarters.