This Recent Economic Developments and Selected Issues paper highlights that after several years of relatively buoyant growth, Spain’s economy went into recession in late 1992 and through 1993, but recovered rapidly in 1994 and early 1995. Toward the end of 1995, there was a renewed slowdown,...

This Selected Background Issues paper examines different aspects of the social security system in Spain. The paper describes the role of this system in the process of consolidating the government finances in the short- and medium-term, and to present possible measures to address the policy...

This paper describes economic developments in Spain during the 1990s. Spain emerged from a recession in 1994, as real GDP increased by 2 percent, following a decline of 1.1 percent in 1993. The recovery was triggered by a surge in exports that started in mid-1993, in turn spurred by the sharp...

This Selected Issues paper and Statistical Appendix constructs an index of human capital for the Spanish labor force over 1977–97, and projects it over the next decade on the basis of likely demographic developments. The methodology by which the index is constructed considers both educational...

This Selected Issues paper analyzes labor market policies and unemployment dynamics in Spain. It provides a brief overview of economic developments and the institutional evolution of the Spanish labor market. The paper presents a basic model of the labor market, which is estimated for 1971–93....

This Selected Issues paper analyzes the sources of the persistence of geographical unemployment imbalances and low speed of adjustment to regional labor demand shocks in Spain. The paper argues that, under present labor market arrangements, these imbalances are unlikely to be corrected in the...

A decade of strong expansion in the Spanish economy led by a credit-fueled housing boom was hit by three major shocks. The policy response to Spain’s economic challenges has been strong and wide-ranging, helping to strengthen market confidence. A decisive implementation of the envisaged...

Rebalancing in Spain’s private sector is under way, but with more modest progress on reducing stocks. Spain is subject to significant spending pressures, reflecting unfavorable demographic trends and subdued growth prospects, and will require substantial structural reform. Priority reforms are...

The general government in Spain is composed of the State (central) government, the social security system, 17 regional governments, and a very large number of municipalities. Over the last several years, motivated in part by a desire to qualify for participation in Stage 3 of monetary union, the...

Spain has achieved impressive growth in recent years—reflecting favorable competitiveness, and the impact on interest rates and confidence of its successful road to monetary union. Despite several years of rapid growth, there are no unambiguous signs of overheating. Underlying inflation has...