91. Economic Survey of Spain, 2007
- Publication Date:
- 01-2007
- Content Type:
- Policy Brief
- Institution:
- The Organisation for Economic Co-operation and Development
- Abstract:
- Spain's economy has managed a remarkable performance in terms of growth, employment and public finances over more than a decade. A combination of expansionary monetary conditions, fiscal prudence, beneficial structural reforms and the positive supply-side effects of the strong rise in immigration has contributed to these outcomes. But these favourable developments are tempered by deterioration in several areas: the still high inflation differential has harmed competitiveness, and the resulting low real interest rates entail excessive domestic demand, which has been supported, jointly with employment growth and immigration, by ongoing rapid increases in household indebtedness and house prices. Despite some improvement, growth has therefore remained unbalanced as manifest in the large external deficit. Looking ahead, productivity gains are still modest, risking a substantial weakening in output and per capita income growth in the coming years.
- Topic:
- Development, Economics, and Migration
- Political Geography:
- Europe and Spain