Spain’s economy is growing rapidly: the secret of the country’s success
The Spain’s economy remains one of the most stable in the European Union. Another leader is Portugal, which is also showing growth in its indicators. Analysts note that both countries have been able to strengthen their macro-financial characteristics. This makes it possible to be optimistic about the long-term growth of these economies.
Over the past 12 months, Spain has recorded the highest economic growth rates among European countries. Portugal, despite some slowdown in the middle of the period, reached high positions by the end of 2024. Experts highlight a number of key factors in the economic growth of these countries, including:
– the peculiarities of a service-oriented economy;
– the rapid growth of tourism;
– high levels of migration.
Additionally, analysts have noted important structural changes. In the 2000s, Spain ran a budget deficit, which has now turned into a surplus. Such changes have contributed to a reduction in public and private debt.
In the 2010s, economic forecasts for Spain and Portugal were among the worst in the EU. However, thanks to a combination of internal and external factors, the countries have achieved strong results. Experts expect stable growth to continue over the next decade.
The success of Spain’s economic model
The Spanish government forecasts GDP growth of 2.6% in 2025. Previously, the authorities expected an increase of 2.4%, but after a successful 2024, they revised the scenario. Last year, the country’s economy grew by 3.2%. These indicators put Spain fourth in the EU in terms of its economy size. At the same time, the government managed to achieve the best growth rates.
According to experts, these successes have been achieved thanks to the balance of processes. Although tourism remains an important part of the economy, significant growth has occurred in areas such as technology, investment, and financial services.
Spain is investing in the development of the railway system, the production of electric cars and the promotion of small businesses. This approach is yielding positive results. Another advantage of the local economy is its low dependence on industry. Unlike other EU countries, Spain has suffered little from rising energy prices and competition from China.
The introduction of the ‘Iberian Modification’ was an important step in maintaining economic stability. This allowed countries to cap the price of gas used to generate electricity, which in turn limited the growth of utility bills. Spain is also investing in the development of green energy, which helps maintain economic stability. The country ranks second in the European Union in terms of renewable energy.
One of the limiting factors is the traditionally high unemployment rate. However, this rate continues to fall, indicating positive economic trends in the country.
