Spain becomes leader in economic growth in Europe

Spain is growing at an impressive rate, outpacing most European countries. The country’s economy is set to grow by 3% in 2024, almost four times the eurozone average. Thanks to increased tourism, immigration and EU funds, the country has created 1.8 million more jobs than in 2019. The influx of migrants, especially from Latin America, is boosting the workforce and supporting the hospitality and technology industries.

Spanish companies such as Smartick, an edtech company, are testament to the country’s digital transformation. Non-tourism services exports exceeded tourism revenues for the first time during the pandemic and continue to grow. However, despite the macroeconomic success, per capita income growth is slow due to the high proportion of low-paid work.

Private sector investment remains a weak link in the economy. Businesses face tax increases and changes in labour laws, which are holding them back. In a context of political instability, Spain must find a balance between supporting social policies and stimulating long-term growth to consolidate its success.