Spain | Regional convergence elusive in the recovery

Summary

Regional convergence has been slow during the recovery. Lower income regions are creating employment at high rates but their low productivity growth is a burden. Attracting investment, reducing employment procyclicality and policies aimed at improving demographic dynamics would boost convergence.

Key points

• Key points:
• The recovery that began in 2013 is characterized by a slower convergence in GDP per capita among the Autonomous Communities than that observed in the expansion between 2000 and 2008
• Productivity has contributed to regional divergence in this recovery, while in the previous expansion it had favoured convergence
• This occurs despite the fact that lower-income regions are decreasing their unemployment rate at a higher pace in the post-crisis period than higher-income regions
• Economic policies aimed at raising productivity growth, improving investment and reducing employment procyclicality in lower income regions would foster convergence
• Policies aimed at improving the demographic dynamics in lower income communities will favour the reduction of disparities between CC. AA.

Geographies

Topics

Tags