Country snapshots 2017-18: Spain

Still high unemployment

The Spanish economy has grown strongly in 2016, led by domestic demand spurred by easy monetary policy in the euro area and a fiscal stimulus. The expansionary phase is expected to continue in 2017 and 2018, with domestic demand leading the recovery, albeit at a slower pace as some factors that have contributed to boost consumption, such as low oil prices and lower taxes, will recede. Inflation will gradually pick up as the effects of low oil prices diminish, but pressures will remain moderate due to still high unemployment. 

The unemployment rate is declining, but remains high, at about 19%. While falling, high long-term and youth unemployment pose particularly acute challenges. More effective active labour market policies and re-skilling are needed, along with a recovery in demand. Boosting living standards in the medium term hinges on increasing productivity via higher investment in innovation, strengthening skills and more intense competition.

GDP growth

2013

Current prices EUR billion

2016

  

2017

% real change

2018

   
1 025.6 3.2 2.3 2.2

Visit www.oecd.org/eco/economicoutlook.htm                                   

©OECD Observer No 308 Q4 2016            




Economic data

GDP: +0.43% Q1 2017
Employment rate: 67.2% Q4 2016
Annual inflation: 2.4% Apr 2017
Trade: +3.0% exp, +4.0% imp, Q1 2017
Unemployment: 6.008% Mar 2017
LOOKING AHEAD: The outlook, to judge by factory order books, building permits, long-term interest rates and other "leading" indicators that point to future activity remains modest at best. Click curve to find out more country trends.
Updated: 14 June 2017

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