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2017 oecd economic survey of spain
The document summarizes the 2017 OECD Economic Survey of Spain. It finds that while the Spanish economy has rebounded from the crisis and unemployment is falling, unemployment, especially among youth, remains high. Poverty also increased during the crisis and child poverty levels are high. Educational performance and attainment needs improvement and productivity growth has been low. Barriers in professional services and other sectors remain. It provides recommendations to increase employment services funding, reduce taxes on low wages, improve education, increase social benefits to reduce poverty, lower barriers to innovation and investment, and boost public R&D spending.
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2017 oecd economic survey of spain
- 1. 2017 OECD ECONOMIC SURVEYOF SPAIN Reforms for inclusive growth 14 March 2017, Madrid Collector : mortezaheydari zad E_mail : [email protected] Phone: +989370883675
- 2. The economy reboundedsharply 2 Source: OECD (2017), OECD Economic Outlook: Statistics and Projections (database), March.
- 3. Unemployment is falling 3 Source:OECD (2017), OECD Employment and Labour Market Statistics (database), February.
- 4. Private debt isdeclining 4 Source: OECD (2017), "Financial Dashboard", OECD National Accounts Statistics (database), February.
- 5. Non-performing loans aredeclining 5 Note: Data for 2016 refer to Q3 2016 for Spain and Q2 2016 for France. Source: IMF (2017), Financial Soundness Indicators (database), International Monetary Fund, February.
- 6. Public debt hasstabilised but remains high 6 Note: Public debt, Maastricht definition. Source: OECD (2017), OECD Economic Outlook: Statistics and Projections (database), February. Stick to medium-term fiscal targets to ensure a gradual reduction of public debt.
- 7. VAT tax revenueis low 7 Note: The VAT revenue ratio is the ratio of actual VAT collection to revenue that would be collected if VAT was applied at the standard rate to the entire potential tax base and all revenue was collected. Source: OECD (2016), Consumption Tax Trends 2016: VAT/GST and excise rates, trends and policy issues. Abolish regressive reduced VAT rates.
- 8. Environmental taxes arelow 8 Note: 2013 for Poland. Source: OECD (2016), "Green Growth Indicators", OECD Environment Statistics (database), December. Increase environmental taxes.
- 9. Key recommendations Macroeconomic policies Continue to undertake structural reforms towards solid and balanced growth. Stick to medium-term fiscal targets to ensure a gradual reduction of public debt. Enhance the efficiency of the tax system by: Abolishing poorly-targeted personal income tax exemptions; Abolishing regressive reduced VAT rates; Increasing environmental taxes.
- 10.
- 11. Youth and long-termunemployment are declining, but remain high 11 Source: OECD (2017), OECD Employment and Labour Market Statistics (database), February; and Eurostat (2017), "Employment and unemployment (Labour Force Survey)", Eurostat Database, February.
- 12. Spending on jobmarket programmes is low 12 Note: Spending on active labour market programmes per unemployed as a percentage of GDP per capita. Source: OECD (2016), "Labour market programmes: expenditure and participants", OECD Employment and Labour Market Statistics (database), December. Increase resources and staff-to-job seeker ratios.
- 13. Job market programmesare concentrated in employment incentives 13 Participants in active labour market policies Note: 2013 for Ireland, Poland and Spain. 2010 for Greece. Source: OECD (2016), "Labour market programmes: expenditure and participants", OECD Employment and Labour Market Statistics (database), December. Increase the efficiency of regional public employment services by employing profiling tools and specialisation of counsellors.
- 14. Tax burden onlabour is high 14 Note: Average rate of social security contributions, single person at 100% of average earning, no child. Source: OECD Taxing Wages. Reduce employer social security contributions for low-wage workers on permanent contracts.
- 15. Main recommendations Reducing unemployment Increase the efficiency of regional public employment services by: Employing profiling tools and specialisation of counsellors; Increasing resources and staff-to-job seeker ratios; Improving coordination to provide integrated support for jobseekers via a single point of contact for social and employment services and assistance. Reduce employer social security contributions for low-wage workers on permanent contracts. Request gradually increased representativeness of business associations when allowing the extension of collective agreements.
- 16.
- 17. School performance remainsweak 17 Mathematics performance Source: OECD (2016), PISA 2015 Results (Volume I): Excellence and Equity in Education. Improve the quality of teaching through better university and on-the-job training for teachers.
- 18. 18 Mathematics performance Source: OECD(2016), PISA 2015 Results (Volume I): Excellence and Equity in Education. Regional disparities on school performance are large
- 19. Early school-leaving remainshigh 19 Early school leavers Note: Percentage of the population aged 18 to 24 having attained at most lower secondary education and not being involved in further education or training. Source: Eurostat (2016), "Early leavers from education and training", Eurostat Database, December.
- 20. 20 Percentage of populationaged 25-64 having attained at least upper secondary education Note: 2014 for France. 2013 for Chile. Source: OECD (2016), Education at a Glance 2016: OECD Indicators. Educational attainment remains low Continue the development and modernisation of Vocational Education and Training (VET).
- 21. Main recommendations improving skills Improve the quality of teaching through better university and on-the- job training for teachers. Continue the development and modernisation of Vocational Education and Training (VET). Expand dual VET and ensure skills meet firms’ needs by fostering a greater role of employers in training students and designing curricula. Promote the VET system and adult education programmes to help the unemployed and those in need to gain relevant skills.
- 22.
- 23. Poverty increased duringthe crisis 23 Source: Provisional data from the OECD Income Distribution Database.
- 24. Child poverty ishigh 24 Note: Data refer to the year when the survey took place, describing the situation of the previous year. Source: Eurostat (2017), "Monetary poverty", in Living conditions and welfare, Eurostat Database, February. Poverty rate after taxes and transfers for those aged less than 16 years-old, (poverty line at 50% of median equivalised income)
- 25. Transfers for thepoor are very low 25 Note: Public social cash transfers at the household level, adjusted for household size. Source: Calculations based on the OECD Income Distribution Database. Cash transfers to working age individuals in 20% lowest income group Increase the amount and coverage of the regional minimum income support programmes and of cash benefits for families with children.
- 26. Main recommendations reducing poverty Increase the amount and coverage of the regional minimum income support programmes Increase cash benefits for families with children.
- 27.
- 28. Productivity is low 28 Averageannual multifactor productivity growth between 2008-15 Source: OECD (2016), "OECD Economic Outlook No. 100, Volume 2016 Issue 2", OECD Economic Outlook: Statistics and Projections (database), November.
- 29. Professional services entrybarriers are high 29 Index scale of 0-6 from least to most restrictive, latest data available Continue to implement the Market Unity Law and adopt the professional services reform. Note: Professional services cover four sectors: accounting services, legal services, engineering services and architectural services. Source: OECD (2013), OECD Product Market Regulation Database.
- 30. There is scopeto reduce barriers in service sectors 30 Source: OECD (2017), Services Trade Restrictiveness Index (STRI) (database), March.
- 31. Business spending onR&D is low 31 Partially reallocate funds from loans to R&D grants to projects and researchers based on performance and international peer review. Note: 2014 for Canada, Ireland and Turkey. 2013 for Australia and New Zealand. 2012 for Switzerland.. Source: OECD (2017), Main Science and Technology Indicators (database), March.
- 32. Venture capital investmentis low 32 Increase public and private funding for innovative firms at the seed and early start-up phases. Note: 2014 for Israel and Japan. Source: OECD (2016), Entrepreneurship at a Glance 2016.
- 33. Water stress isone of the highest in the OECD 33 Source: OECD (2017), "Green Growth Indicators", OECD Environment Statistics (database), February.
- 34. Main recommendations Fostering innovativebusiness investment Continue to implement the Market Unity Law and adopt the professional services reform. Partially reallocate funds from loans to R&D grants to projects and researchers based on performance and international peer review. In cases when debt forgiveness is not automatic, reduce the period during which bankrupt entrepreneurs are required to repay past debt from future earnings. Set up SME bond funds with guarantees provided both by government and SME companies. Increase public and private funding for innovative firms at the seed and early start-up phases.
- 35. 35 For more information Disclaimers: Thestatistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Collector : mortezaheydari zad E_mail : [email protected] Phone: +989370883675