Spain’s economy has surged, growing 3.2% last year, far outpacing Germany, France, Italy, and the UK, as a record 94 million tourists visited and immigration reached a 10-year high. Analysts credit the government’s markedly different approach to migration, which Prime Minister Pedro Sánchez has championed as essential for growth and sustaining the welfare state in a country with one of the EU’s lowest birthrates.
In October, Sánchez told parliament: “Spain needs to choose between being an open and prosperous country or a closed-off, poor country.” Since then, economic data has backed his stance. Unemployment fell to its lowest since 2008, with migrants filling gaps in an ageing labour market. Of 468,000 jobs created last year, roughly 409,000 were filled by migrants or dual nationals, many from Latin America, Europe, and Africa.
The Bank of Spain estimates immigration contributed over 20% to GDP per capita income growth from 2022-2024. Spain’s abundance of wind and solar renewables has kept energy costs relatively low, while EU Covid recovery funds and government deficit spending on pensions and public sector hiring have also boosted the economy.
This contrasts with other European nations, where far-right and right-wing politicians compete for votes with anti-migrant rhetoric, despite ageing populations shrinking the workforce. In Germany, a study warned that deporting Syrians could cause critical shortages in medical services, as over 5,000 Syrian doctors are fully employed.
Jean-Christophe Dumont, head of the OECD’s international migration division, noted: “What is clear is that migration makes a positive contribution to the economy, provided that it is well managed.” Spain’s experience offers a counterpoint to the rising hostility elsewhere.
