Productivity, Cycle and Reforms

Summary

With changes to labor regulations being proposed, priority should be given to addressing structural challenges that have not been resolved by the reforms that have taken place in recent years. Among these factors that are embedded in the Spanish economy is productivity.

Key points

• Key points:
• The labor productivity of the Spanish economy is comparatively low.
• Gross Value Added (GVA) per hour worked barely exceeded EUR 27 in 1995, 14% lower than the European average.
• The most direct consequence of reduced productivity is low salaries.

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