OECD Economic Surveys Spain, 1995-1996.

176 Pages·10.022 MB·English

by  OECD

SPAIN
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OECD
ECONOMIC
SURVEYS
1995-1996
SPAIN
ORGANISATION FOR ECONOMICCO-OPERATION AND DEVELOPMENT
ORGANISATION FOR ECONOMIC
CO-OPERATION AND DEVELOPMENT
Pursuant to Article 1 oftheConvention signed in Paris on 14th
December 1960,and which came intoforce on 30th September 1961,
the Organisation for Economic Co-operation and Development
(OECD)shall promotepoliciesdesigned:
to achieve the highest sustainable economic growth and
employment and a rising standard of living in Member
countries,whilemaintainingfinancial stability,andthusto
contributetothedevelopmentoftheworldeconomy;
to contribute to sound economic expansion in Memberas
well as non-membercountries in the process ofeconomic
development;and
to contribute to the expansion of world trade on a
multilateral, non-discriminatory basis in accordance with
international obligations.
The original Member countries of the OECD are Austria,
Belgium, Canada, Denmark, France, Germany, Greece, Iceland,
Ireland,Italy,Luxembourg,the Netherlands,Norway,Portugal,Spain,
Sweden, Switzerland, Turkey, the United Kingdom and the United
States. The following countries became Members subsequently
through accession at the dates indicated hereafter: Japan (28th April
1964), Finland (28th January 1969), Australia (7th June 1971), New
Zealand (29th May 1973), Mexico (18th May 1994) and the Czech
Republic (21st December 1995). The Commission of the European
Communities takes part in the work of the OECD (Article 13 ofthe
OECDConvention).
Publiéégalementenfrançais.
©OECD 1996
Applicationsforpermissiontoreproduceortranslate
allorpartofthispublicationshouldbemadeto:
HeadofPublicationsService,OECD
2,rueAndré-Pascal,75775PARISCEDEX 16,France.
Table of contents
Introduction 1
I. Recent developments 3
Overview 3
The recovery in output: the re-balancing of growth from exports
to domestic demand 3
Wages and employment: a more flexible labour market? 8
A temporary resurgence in inflation 14
National income: a rebound in savings 14
The balance of payments 17
II. Macroeconomic and structural policies 21
Fiscal policy 23
Monetary Policy 37
Structural policies 45
HI. The economic outlook for 1996-97 47
IV. Implementing the OECD Jobs Strategy 51
Introduction 51
Labour market and employment performance 56
Policy requirements 60
Recent actions 75
Assessment and scope for further action 75
V. The social security system: pensions and health 79
Introduction 79
Overview of the social security system 81
Pensions 87
Health care 95
Reforms under discussion 103
VI. Conclusions 104
Notes 113
Bibliography 121
Annexes
I. Supplementary information for Chapter IV 123
II. Social security system: selected information 126
III. Chronology of main economic events 137
Statistical annex and structural indicators 143
Boxes
1. The OECD Jobs Strategy: synopsis of recommendations for Spain 54
2. Employment protection legislation 62
Tables
Text
1. Demand and output 5
2. Labour market trends 11
3. Wages and labour costs 13
4. The current balance of payments 18
5. The capital account of the balance of payments 20
6. General government accounts 24
7. The State Budget 27
8. Convergence programme 1995-97 30
9. Indicators of tax structure 34
10. Monetary aggregates 40
1 1. Short-term prospects 49
12. Employment and unemployment rates by age and sex 58
13. Social security regimes 86
14. Health standard indicators 97
Annex
Al. Pension policy options 127
A2. Demographic indicators: Spain and EU (12) 129
A3. Share of pensions by type 129
A4. Contribution rates and caps in the EU 130
A5. Invalidity pensions granted to workers over 55 130
A6. Labour and capacity indicators in the health sector 131
Statistical annex and structural indicators
A. Main aggregates of national accounts 144
B. Income and outlay transactions of households 145
C. Public sector accounts 146
D. Labour market 150
E. Price and wage trends 151
F. Money and credit 152
G. Balance of payments 153
H. Foreign trade 154
I. Foreign assets and liabilities 157
J. Public sector 158
K. Production structure and performance indicators 159
Figures
Text
1. Contributions to GDP growth 4
2. External competitiveness 4
3. Components of final demand 7
4. Employment and wages 9
5. Output and labour market 12
6. Prices 15
7. Savings and investment 16
8. General government budget 33
9. The structure of the general government account: a comparison
with the EU 35
10. Interest rates 38
11. Counterparts of money 41
12. The exchange rate 42
13. Conjunctural indicators 48
14. Labour market 52
15. Employment and labour force 53
16. Business sector: real wage, productivity and labour shares 59
17. Wage drift 68
18. Unemployment rates by age, sex and educational attainment 73
19. Social protection expenditure in the EU 80
20. Social security expenditure and financing 83
21. Revenue and expenditure by regime 85
22. Pension replacement ratios in the EU 88
23. Population composition of Spain and the EU 91
24. Pension payments and contributions, 1995-2070 93
25. Total health care expenditure 96
26. Main categories of health expenditure 101
Annex
Al. Unemployment rates by age and sex 124
A2. New employment by type of contract 125
A3. Population protections and elderly dependency ratios 1995-2070 132
A4. Expenditure on social protection 133
A5. Per capita income and social protection expenditure in the EU 134
A6. Demand for health care and income levels 135
A7. Total health expenditure by components 136
BASIC STATISTICS OF SPAIN (1994)
THE LAND
Area(sq. km) 506.0 Majorcities, 1991 census(thousand
Cultivatedarea(sq. km), 1991 200.9 inhabitants):
Madrid 3010
Barcelona 1 644
Valencia 753
Seville 683
THE PEOPLE
Population (thousands) 39 150 Civilianemployment(thousands) 11 730
Numberofinhabitantspersq.km 77.4 bysector(percentoftotal):
Netnaturalincrease(thousands), 1992 60 Agriculture 9.8
Netmigration(thousands), 1992 25 Industry 21.1
Construction 9.0
Services 60.1
PRODUCTION
Grossdomesticproduct,GDP(billionpesetas) 64669 GDPatfactorcostbyorigin (percentoftotal):
GDPperhead(US$) 12331 Agriculture 3.7
Grossfixedinvestment Industry 24.4
PercentofGDP 19.9 Construction 8.5
Perhead(US$) 2450 Services 63.4
THE GOVERNMENT
Publicconsumption(percentofGDP) 16.9 CompositionofParliament(numberofseats): 350
Fixed investment(percentofgrossfixed SpanishLabourSocialistParty(PSOE) 159
capitalformation) 18.9 PopularParty(PP) 141
Governmentrevenue(percentofGDP) 39.5 IzquierdaUnida 18
Generalgovernmentdeficit(percentofGDP) 6.6 ConvergenceandUnion (CIU) 17
BasqueNationalistParty(PNV) 5
CanarianUnion(CC) 4
Herri Batasuna 2
Other 4
Lastgeneralelections:June 1993
FOREIGN TRADE
Exportsofgoodsandservices: Importsofgoodsandservices:
(billionUS$) 107.6 (billionUS$) 107.2
(percentofGDP) 22.3 (percentofGDP) 22.2
Exportsasapercentoftotalmerchandise Importsasapercentoftotalmerchandise
exports,customsbasis: imports,customsbasis:
Foodstuffs 12.8 Foodstuffs 8.1
Otherconsumergoods 29.4 Otherconsumergoods 17.9
Energy 1.7 Energy 9.2
Otherintermediategoods 42.7 Otherintermediategoods 49.0
Capitalgoods 13.4 Capitalgoods 15.7
THE CURRENCY
Monetaryunit:Peseta CurrencyunitsperUS$,averageofdaily
figures:
Year 1994 133.96
November 1995 121.70
Note: Aninternationalcomparisonofcertainbasicstatisticsisgiveninanannextable.
This Survey is based on the Secretariat's study
prepared for the annual review of Spain by the
Economic and Development Review Committee
on 20th November 1995.
Afterrevisions in the lightofdiscussionsduring the
review,final approval ofthe Surveyforpublication was
given by the Committee on 6th December 1995.
The previous Survey of Spain was issued in
June 1994.