Spain’s remarkable economic performance stands in stark contrast to its European neighbours, achieving the highest growth rate among advanced economies with a 3.4 per cent year-on-year expansion in the third quarter of 2024.
The Spanish economy’s robust growth trajectory, forecasted by the International Monetary Fund to reach 2.9 per cent this year and 2.1 per cent in 2025, outshines its European counterparts. These figures particularly overshadow Germany’s stagnant outlook and the UK’s modest 1.1 per cent projection for 2024.
Spain’s success story is built upon several key pillars. The country’s progressive immigration policies, championed by Prime Minister Pedro Sánchez, have significantly bolstered the labour market. More than 1 million immigrants are expected to arrive annually until 2028, addressing critical workforce shortages and contributing to economic dynamism.
The tourism sector continues to be a cornerstone of Spanish prosperity. As the world’s second most popular tourist destination behind France, Spain welcomed 10.9 million international visitors in August alone, surpassing pre-pandemic levels. This tourism boom has become a crucial driver of economic growth, despite some local resistance to overcrowding in popular destinations.
Foreign investment has played a pivotal role in Spain’s economic renaissance. Since 2019, the country has ranked as the world’s sixth-largest destination for foreign investment projects, with renewable energy manufacturing attracting significant capital flows.
The Spanish success story is particularly noteworthy given the challenging global economic climate. While inflation has moderated from its 10.7 per cent peak in 2022 to 1.8 per cent, unemployment remains a concern at 11.2 per cent. However, this figure represents the lowest level since the financial crisis, indicating sustained progress in labour market recovery.
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