On current policies, longer-run growth prospects are limited
The GDP recovery was slower than in the other main euro area countries
Exports have been particularly dynamic
Exports are diversified
Food and core inflation remain high
Unemployment has decreased but remains higher than in other OECD countries
Activation requirements for the unemployed are lower than in most other OECD countries
The private-sector financial situation has improved
Financial stability indicators are weaker than the OECD average
Spain has moderate government revenue and spending but also a large debt
Spain’s recent government deficits have been shrinking but for mostly cyclical reasons
Fiscal consolidation efforts are necessary to set public debt on a downward trend
A small share of public revenue is raised from indirect and environment-related taxes
The VAT is underutilised
Average tax burdens are high for low-income households with children
Spain raises little environmentally related tax revenue
The structure of government expenditure is weighted towards social spending
The ageing of Spain’s population is about to accelerate
Spain’s pension system offers the average worker a high replacement rate
Old-age poverty rates have risen somewhat but remain below the OECD average
The share of GDP devoted to health care is still moderate but will rise somewhat
Spain has a lack of nurses and too many workers off work sick
Spain has a high share of daily smokers
High income inequalities remain after redistribution
Poverty remains high
The risk of poverty is particularly high among young people
Public spending on social services is below the OECD average
Social expenditure is centred on cash contributory benefits
The distribution of social benefits favours wealthier people
The minimum income appears relatively low by international standards
The level of productivity is relatively low and has grown little over the past decade
Innovative firms are few
Spending on R&D is low
Corruption is perceived as high
Public procurement could be better handled
Environmental policy is not very stringent compared to other countries
Decoupling of energy use and GHG emissions from output has continued
Net Effective Carbon Rates are only moderate
Like other countries Spain has shifted its energy supply towards gas and renewables
Nitrates are a problem in drinking water