BBVA's research indicates that business size is the determining factor in explaining the productivity difference between Spain and Germany. According to the study, approximately 75% of the productivity gap between the two countries can be attributed to the size of Spanish companies compared to their German counterparts.
The head of Economic Analysis at BBVA Research, Rafael Doménech, presented these conclusions during a conference organized by Fedea and the General Council of Economists. The study identifies that the remaining 25% of the productivity difference is due to other factors, including the sectoral composition of the Spanish economy.
The data reveal that Spanish companies tend to be significantly smaller than their German counterparts, which directly impacts their productive capacity. This phenomenon reflects a structural characteristic of the Spanish economy that contributes to its relative lower productivity.
The event served as a forum to discuss the structural challenges of the Spanish economy and possible policies to reduce this productivity gap relative to Germany.
