Spain has become one of the most talked-about economies in Europe. In 2024, it was named the world’s best by The Economist. How did this happen? Many point to Spain’s unique approach to migration, which has sparked an economic boom. By opening its doors to more immigrants, Spain has experienced economic growth that other countries are struggling to match. The key to this success lies in the country’s new and different stance on migration, which has helped its economy soar.
A Bold Decision: Welcoming Immigrants for Economic Growth
In a moment of uncertainty, Spain’s government made a bold move. The country has been facing low birth rates and an aging population, just like many other European nations. This meant fewer people were available to work, which could hurt the economy and the country’s social systems. So, Spain’s leaders decided to focus on immigration, seeing it as a solution to these problems.
Spain’s Prime Minister made it clear that immigration wasn’t just about being kind to people in need; it was about ensuring the country’s future. The government understood that welcoming immigrants could be the only way to keep the economy growing, support jobs, and sustain services like healthcare and pensions for older citizens.
Unlike other European countries, where political leaders are tightening borders and turning against migrants, Spain chose a radically different path. It welcomed people from all over the world, including from countries in Latin America, Africa, and Europe. This openness, many argue, is the main reason Spain’s economy is thriving today.
Immigration Fuels Economic Growth and Job Creation
One of the main reasons Spain’s economy has grown so much is the number of immigrants arriving. In 2022, Spain saw the highest number of people moving there in ten years—nearly 750,000 new arrivals. These immigrants didn’t just bring their cultures and ideas; they filled important jobs, especially in industries facing labor shortages. From hotels to factories, workers from other countries have helped keep Spain’s economy moving forward.
In fact, immigrants made up a large portion of the 468,000 new jobs created in Spain last year. Around 409,000 of these jobs were filled by immigrants or people with dual nationality. These workers helped fill gaps in sectors like tourism, healthcare, construction, and more. Spain also saw a huge increase in the number of tourists visiting, which created even more jobs in the hospitality industry, such as restaurants and hotels. With more people coming to Spain for vacations and business, the country was able to keep expanding its economy.
Lower Unemployment and Higher GDP Growth
Spain has experienced impressive economic results since adopting its migration-friendly policies. In 2023, Spain’s economy grew by 3.2%, a rate much higher than most of its European neighbors. For comparison, countries like Germany, France, and Italy saw their economies either shrink or grow at much slower rates. Spain’s economic growth is partly due to its large immigrant population, which helped lower unemployment to its lowest level in years.
The increase in immigrants has also helped Spain’s GDP (Gross Domestic Product) grow. In simple terms, this means the country is producing more goods and services, which boosts the overall economy. Spain’s economy expanded much faster than countries like Germany, which saw a 0.2% contraction in its GDP, and France, with just 1.1% growth. The main reason for Spain’s strong economic performance is the ability to welcome and make use of the skills of migrants, particularly as the working-age population in Spain continues to age.
Immigration, combined with other factors such as renewable energy from wind and solar power, has been crucial in helping Spain keep energy prices low. This has benefited businesses and everyday people. Moreover, Spain has also received funding from the European Union’s Covid recovery plan, which helped the country stabilize after the pandemic.
The Impact on Spain’s Future
Spain’s success with immigration shows that when managed well, immigration can help solve major economic problems. As Spain continues to welcome migrants, it has ensured that its economy stays strong and can support an aging population. Immigrants have become vital workers who support social services like pensions and healthcare. They also contribute to the economy by paying taxes and providing services that locals rely on.
Although Spain’s approach to immigration is currently working well, there are still challenges. For example, Spain is facing a housing crisis, with high demand for homes in major cities. This could cause social tensions if not managed properly. However, the country’s focus on making sure immigrants are integrated into the workforce, have access to housing, and can learn the local language has helped reduce these risks.
Spain’s unique approach to migration has transformed it into one of Europe’s most exciting economies. By seeing immigration not as a problem, but as an opportunity to strengthen its workforce and economy, Spain has proven that it can lead the way in a time when many other countries are struggling with similar issues. While challenges remain, the results of Spain’s policy so far are undeniable.
