Spain has become a surprising economic leader in the European Union. The nation, which struggled following the 2008 financial crisis, is currently experiencing rapid development. Economists cite immigration as a primary reason why its GDP is growing more quickly than that of several EU countries.
Spain shows that immigration does not hurt economies, despite what some people claim. Accepting immigrant labour has boosted economic growth, improved the labour market, and brought life to underutilised areas.
Spain Leads the EU in Economic Growth
Spain’s economic recovery is noteworthy. The Economist named it the EU’s best-performing economy in 2024. The study examined GDP, inflation, stock market movements, unemployment, and fiscal health.
Spain’s GDP increased by more than 3%, surpassing the Eurozone’s growth of 0.7%. High immigration rates and a robust labour market were key factors. Increased economic productivity, resulting from the employment of more workers, directly contributes to the country’s growth.
Pedro Sánchez, the prime minister, has publicly endorsed immigration as a means of boosting the economy. He emphasised that it is crucial for the economy, not just a humanitarian concern. This view is reflected in Spanish policy.
By facilitating employment for international students, expediting recruitment procedures for high-demand positions, and extending temporary work permits, the nation is addressing its labour shortage.
Regularisation and Workforce Strength
By giving unauthorised migrants legal status, Spain is addressing labour shortages. By 2027, 300,000 persons are expected to be regularised by the government. This is in line with previous initiatives that, from 1986 to 2005, legalised 1.2 million migrants.
Increasing workers’ participation in the formal economy, where they pay taxes and make social security contributions, is the obvious objective. Even trade unions recognise that keeping them hidden damages the system.
Currently, 18.1% of Spain’s population is foreign-born, and 42% are in the prime working-age range of 25 to 44. This inflow combats an ageing population and supports the welfare state. The public generally supports integration. According to a survey, about 75% of young Spaniards think that immigrant practices should be tolerated unless they violate the constitution.
Reviving ‘Empty Spain’
Spain’s rural areas are thriving due to immigration outside of its major cities. Depopulation has been a problem in many villages for years. However, the tendency is being reversed by migrants and refugees. Since 2021, a refugee shelter in the northern town of Burbáguena has accommodated over 1,000 refugees.
With 25 children, the population grew to over 350 when many made the area their permanent home. Local businesses, pharmacies, and even a school bus service have all been revitalised by their presence.
Years of urban migration and low birth rates hollowed out much of Spain. Immigrants are now bolstering communities, supplying labour, and filling the gaps. Spain’s economic success demonstrates that welcoming immigrants is a strategic advantage rather than a vulnerability.
FAQS
How has Spain’s economy grown compared to other EU nations?
Spain’s GDP expanded by more than 3% in 2024, which was more than the 0.7% average growth for the Eurozone. Spain’s economy is now among the EU’s fastest-growing, with a more robust labour market and increasing productivity.
What rules does Spain have in place for integrating newcomers into the workforce?
Spain has extended temporary work permits, simplified the process for international students to obtain employment, and streamlined work permit procedures. Additionally, it is bringing 300,000 undocumented migrants into the official economy by regularising them.
