Global | What do we mean when we compare productivity across countries?

Summary

The productivity debate requires distinguishing between output per worker, output per hour, and total factor productivity. Confusing these metrics can lead to inaccurate interpretations regarding the convergence of Europe or Spain with the United States.

Key points

• Key points:
• Since 1995, Southern European countries such as Spain, Italy, and Greece have experienced growth below the EU average, maintaining a persistent structural gap in productivity.
• Between 2019 and 2025, Spain has recorded moderate progress, reflecting the economy's struggle to translate job creation into sustained productivity gains.
• Measured in current purchasing power parity (PPP) terms since 1995, productivity per worker in Spain fell by 9 percentage points relative to the United States, from 83% to 74%.
• When evaluated by GDP per hour worked, Spain's decline relative to the U.S. economy is limited to four points, while the European Union as a whole gained five points.

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