tHe likely last year was Spain, the world's fastest growing major, high-level economy. Spain's GDP, according to preliminary official data for 2024 Growed 3.2%, Almost 5 times The eurozone average and above the US also did quite well. December, economist Spain was ranked first among 37 mostly wealthy countries based on five indicators: GDP, stock market performance, core inflation, unemployment and government deficits. 2025 forecast It looks good.
Why is Spain doing so well? One important reason is immigration. Recent Population flownot only from Colombia, Venezuela, other Latin American countries, and Morocco, but also increased domestic demand and rejuvenated the workforce. According to a major labor state survey, Almost 90% New jobs were fulfilled by workers of foreign origin or dual nationality. There is an unemployment rate The lowest level Since 2007.
Spain's growth is driven by a wide range of factors: a vibrant tourism industry, public investment It is supported EU pandemic recovery funds; Rising services and industrial exports Low energy costs thanks to European single markets and beyond (particularly after 2021), growth in the financial and technology business, and the expansion of Spain's renewable energy. Some of the labor reforms enacted by the Central Left Union government spend more money on the pockets of low-income consumers. Over 50% This is the first time since Prime Minister Pedro Sanchez took office in 2018.
The weights of each of these factors remain debated, but migration remains the most frequently cited reason for Spain's powerful performance, and perhaps the most distinctive advantage compared to other countries. Immigration has also made a visibly change in Spain in recent years, especially in major cities. For example, Madrid has now Over 1 million residents From Latin America – from just 80,000 to just 25 years ago.
Anecdotal evidence shows this transformation. In my own neighborhood in the heart of Madrid, the most popular bookstores run by two people Argentine journalist; Cool Artisan Bakery It continues to expand and was co-founded by a Hungarian woman who moved her business from Budapest. Evangelical churches in Latin America rent old adult films for their worship and gatherings. Traditional Spanish pastry shops are beginning to sell Venezuelan delicacies next to long lines that form every other day outside the consulate. Not too far, a large sign supports the party of Argentinean President Javier Mairei (scrapped by graffiti from his detractors).
Not all economic data tells a rosy story. Spain is still struggling Low productivityIt depends on Public Sector Low wages (per capita GDP is not as growing as GDP) These measures have improved Too much. Tourism, while still driving the economy, has exacerbated housing shortages and spurred backlash against visitors, short-term rental platforms and investment funds.
Immigration is being added to pressure on affordable housing, with demand exceeding supply as populations grow. Some politicians Rich Venezuela and Colombian buyers blame prices for rising in Madrid's most expensive regions. And poor immigrants, especially from North African countries, continue to face them. discrimination and exploitation Not cruel and criminal by employer or landlord. Meanwhile, local and national politicians are often trapped in conflict Minors of housing immigrants A person who arrived in Spain alone.
But despite these challenges, being a richer country in terms of cash conditions and diversity is an enviable position in Europe, especially when Spain is compared to a struggle economy like Germany and the UK.
The Stormy Times may be ahead. Some European neighbors remain economically weak, and global demand could be reduced if Donald Trump launches a transatlantic trade war. If the crisis on the scale of the crash in 2008 recurs, immigrants can return to their country of origin, leaving Spain with an older population and a reduced workforce to support their age and public services.
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But for now, even if it's not perfect, Spain stands as a model for how migration can stimulate the economy and society. Keir Starmer and other leaders in a low-growth economy that lacks ideas should be wary. The rigidity of ideological rigidity towards foreign-born workers is not only xenophobic, but also economically shortsighted.
