Growth and productivity in Spain. From autarky to internationalisation

Spain’s economic growth from 1960 to 2024 has increased its real GDP tenfold, driven mostly by the use of labour and various forms of capital rather than by gains in total factor productivity (TFP). Labour productivity trends reveal an unusually large trade-off between employment and productivity growth, a pattern that differs from other countries and is primarily explained by the volatility of both employment and investment rates. Capital productivity has experienced a continuous decline, while TFP has remained weak and has continued to fluctuate. These trends suggest overcapitalisation, excess capacity and inefficient resource allocation across assets and sectors. The good news is that productive efficiency has improved since the pandemic.

Mas, M., F. Pérez, E. Reig, J. Fernández de Guevara, L. Serrano y J.C. Robledo (2025). «Growth and productivity in Spain. From autarky to internationalisation». Productivity Insights Paper n.º 065. Manchester: The Productivity Institute.