OECD: Spain needs more labor flexibility, among other reforms, to grow more

The Spanish economy, although it is performing better than that of its European partners, is going to slow down next year and to increase its growth in the medium and long term the OECD recommends applying structural reforms, such as giving more flexibility to the working market.

The chief economist of the Organization for Economic Cooperation and Development (OECD), Clare Lombardelli, said, in statements to EFE during the presentation of the interim Perspectives report that “Spain, like many other countries, can use structural reforms to promote stronger growth in the medium and long term.”

Asked what reforms, her answer was firstly that of the labor market, “to increase some flexibility.” Also, with regard to innovation, facilitate the creation of companies and changes to help the mobility of workers.

“These types of issues – he stressed – will help increase Spain’s growth in the short and medium term”.

In its report, the OECD revises upwards its growth prospects for the Spanish economy for this year by two tenths compared to those of June, until 23%which if confirmed will mean that it will almost quadruple the rate of the entire euro zone (0.6%).

However, in 2024 this pace will slow down, although it will continue with a progression greater than that of the euro zone as a whole (1.9%in front of 1.1%).

The OECD projections do not yet include the upward correction that the National Institute of Statistics (INE) has just made of the production figures of the Spanish economy in the years 2020, 2021 and 2022, which assume that at the end of that last year The gross domestic product (GDP) was about 20 billion euros higher than previously believed.

In any case, Lombardelli stressed that the tourism sector “It is incredibly important” for the Spanish economy, although they have not yet been able to incorporate this year’s raw data.

And she was convinced that as Spain remains attractive to visitors, “Tourism will continue to be a large part of the Spanish economy in the medium term.”

Source: EFE