'The law of silence' and the potential of the Spanish economy

Summary

Since the beginning of the recovery, GDP growth in Spain (2.6% per year) has been one of the highest among the large developed economies and consistently higher than that seen for the EMU as a whole (1.8%), but is this a valid and sustainable point of reference for the coming years?

Key points

• Key points:
• The answer depends on whether this performance has been due to a temporary factor or whether it represents a structural improvement in growth capacity.
• In the case of the Spanish economy, there have been several temporary factors.
• There are also structural changes—shared by other countries around us—that put downward pressure on growth.

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