ANNUAL GROWTH AND CONTRIBUTIONS  4.0  CHART 1  Projections  %  4.0  2.0  2.0  0.0  0.0  -2.0  -2.0  Projections  %  -4.0  -4.0 2011  2012  2013  2014  2015  NET EXTERNAL DEMAND  2016  2017  2018  2011  2019  2012  2013  2014  2015  2016  2017  2018  2019  IMPORTS OF GOODS AND SERVICES EXPORTS OF GOODS AND SERVICES NET EXTERNAL DEMAND  NATIONAL DEMAND  GROSS DOMESTIC PRODUCT  SOURCES: INE and Banco de España. FORECASTS FOR THE SPANISH ECONOMY: EMPLOYMENT AND UNEMPLOYMENT GDP GROWTH(%) Contributions of employment and labour productivity (pp) Projections  4  CHART 2  UNEMPLOYMENT RATE (% of the labour force) Projections  28 25  2 22 0  19 16  -2 13 -4  10 2013  2014  2015  2016  LABOUR PRODUCTIVITY  2017  2018  EMPLOYMENT  GDP  2019  2013  2014  2015  2016  2017  2018  2019  SOURCES: INE and Banco de España. particularly marked in the euro area; the progressive normalisation of monetary and financial conditions; and the very limits on the growth of domestic demand, such as, for example, those derived from the current, historically low levels of the household saving rate. On Banco de España estimates, the Spanish economy’s already positive output gap will widen during 2019 (see Chart 3).
Today, more than half of the Thai labour force is in the non-agricultural sector (including services), which is more averse to changes in global competition for trade and investment. Moreover, to maintain competitiveness, our economy needs the labour force that possesses higher and more flexible skill sets to move up the valued added chain of production and trade. In reality, Thailand, just like other countries, has weakness in the mismatch of skills produced through formal schooling from those which firms find useful. Government policies need to address this weakness quickly, by finding ways to align formal education with training through vocational schools and apprenticeship programs organized by private businesses. Key questions will be on designing appropriate incentive structures for players in the education and business sectors, while being mindful of social safety net considerations when businesses close. This is especially important because the agricultural sector now accounts for about 10 percent of the overall economy and cannot provide social-safety support for the non-agricultural sector should a downturn hit. In addition to government policies, investors and firms can play their parts in helping to improve labour skill and quality development. This can be achieved through building more experience in the workplace by investing in the best technology and capacity to use that technology efficiently. Importantly, we also need to focus on the quality of investment that will help build skills and enhance production techniques that adds higher values and saves costs. Ladies and Gentlemen, To close, let me highlight another important underlying strength of the Thai economy.