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The Spanish economy has experienced a notable boost in productivity, reaching levels not seen in the last three decades. This sustainable growth is transforming the national economic landscape.
Driven by technological improvements, innovation and a change in the production model, Spain is increasingly positioned closer to the main European economies in terms of efficiency and growth.
This productive advance not only strengthens GDP, but also lays the foundations for more balanced and competitive economic development in the current European context.
Context and evolution of productive growth in Spain
Spain has seen record productivity growth since 2020, with total factor productivity (TFP) increasing by 1.4% annually, the highest rate in 30 years.
Announcements
This structural change reflects a move from a model based on employment and capital towards one focused on efficiency, driven by digital technologies and growing employment.
Between 2021 and 2024, the improvement in TFP explained 33% of GDP growth, while employment contributed close to 60%, highlighting the consolidation of the new production model.
Evolution of total factor productivity (TFP) since 2020
Since 2020, TFP in Spain has grown on average 1.4% annually, being the main driver of growth in productivity and with an increase of 2% in 2024.
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In contrast, the European average showed a decrease of -0.7%, and countries such as Germany and France reported negative rates in total productivity.
Although labor productivity already exceeds 2000 levels by 19%, capital productivity and TFP remain 8% below, indicating a structural change in development.
Comparison with the Eurozone and main European countries
Spain stands out against the eurozone with sustained productivity growth, while the area is stagnant close to 0% and with falls in key countries such as Germany and France.
Spain's GDP per capita has grown by 3.78% annually since the pandemic, placing it only behind Italy in the European Union, although a gap of 18% persists with respect to the EU-27 average.
This performance positions Spain as one of the countries with the greatest productive acceleration in Europe in recent years, in a context of post-COVID recovery.
Key factors of productivity growth and their impact
Productive growth in Spain is based on multiple factors that have allowed us to improve efficiency and boost the economy after the pandemic.
Employment has generated a strong boost to GDP, while the better use of resources and capital has optimized total factor productivity.
Furthermore, digitalization and innovation have been essential to transform business processes and adapt to the new economic environment.
Contribution of employment and the best use of capital in the advancement of GDP
Employment contributed around 60% of GDP growth between 2021 and 2024, reflecting an increase in effective labor participation.
The greater efficient use of capital also boosted productivity, although its levels remain below previous years, showing room for improvement.
This combination of growing employment and optimized capital explains much of the progress in productivity and recent economic growth.
Digitalization, business dynamism and post-COVID structural change
Digital acceleration has allowed companies to increase efficiency and respond more quickly to market challenges.
Business dynamism translates into structural change, where innovative sectors gain weight and other traditional ones are transformed or reduced.
The post-COVID production model focuses on quality, innovation and flexibility, promoting competitiveness and sustainable growth.
Trends and strategies to enhance focus and productivity in 2026
In 2026, Spain seeks to consolidate its productive growth by betting on quality work and greater efficiency in business management.
Technological adaptation and the restructuring of organizational models will be key to maintaining competitiveness on the European scene.
The focus on innovation and work well-being will allow the transformation of work practices, enhancing the performance and motivation of human capital.
Productivity based on quality of hours and objectives versus quantity
The new production model prioritizes the quality of the hours worked, focusing efforts on meeting clear and measurable objectives.
Reducing the number of unproductive hours increases effectiveness, facilitating a work-life balance that drives engagement.
This approach contributes to optimizing resources and aligning performance with strategic goals, generating greater value for companies and employees.
Integration of artificial intelligence and hybrid work modalities
The incorporation of artificial intelligence optimizes processes, facilitates decision making and improves personalization in jobs.
Hybrid work is established as a flexible modality that combines presence and remote, increasing worker productivity and satisfaction.
Both trends, AI and hybrid work, redefine the work environment, driving innovation, agility and better results in competitive markets.
Practical implications and opportunities for improvement for companies and professionals
Companies can take advantage of the productive impulse to innovate and adapt their processes, improving competitiveness in European markets.
Professionals face the challenge of developing technological skills and efficient time management to respond to growing demands.
Fostering a balanced and flexible work environment becomes vital to retaining talent and enhancing commitment and productivity.
Benefits of maintaining convergence with the EU average and future challenges
Reaching the European average improves Spain's economic position and strengthens its integration into the common market.
However, the current gap requires constant reforms in education, innovation and organizational adaptability so as not to lose competitiveness.
Future challenges include leveraging emerging technology and responding to demographic changes without sacrificing job quality.
Recommended actions: adoption of technology, focus on quality and workplace well-being
Adopting advanced technologies such as artificial intelligence is crucial to optimize resources and streamline decision making.
Prioritizing the quality of work and not just the number of hours improves performance and reduces staff burnout.
Promoting workplace well-being policies will strengthen motivation and productivity, generating a positive cycle for companies and employees.
