A dozen years ago, Spain was the poster child for economic despair. Its government and banks were locked in a vicious downward spiral, kept afloat only by bailouts. Young Spaniards either emigrated or took to the streets in protest over their bleak prospects. Half-built homes and deserted airports stood as grim monuments to a collapsed construction bubble.
But now the country is reportedly on course to be the best-performing, rich-world economy of 2024 on a range of economic fronts — GDP growth, inflation, unemployment, fiscal stability and even stock market performance. Economic growth and job creation are outpacing even the United States, the usual benchmark for success.
Most Read on Euro Weekly News
Spain’s recovery stems from reforms following the financial crisis. Overhauls in banking and the labour market have strengthened the economy, while policies encouraging renewable energy (such as scrapping the infamous “sun tax” on solar power) have bolstered the green sector.
Tourism has rebounded spectacularly, while consulting and tech services are climbing the value chain. Services outside tourism now account for 7-8% of GDP, up from 5.5% pre-pandemic. Foreign investment, including Chinese firms like CAT (a battery-maker) and Chery (a carmaker), is another feather in Spain’s cap.
But challenges remain. House prices are soaring, productivity growth lags and a fragile coalition government resists needed reforms. Spain’s success story is truly inspiring — but resting on its laurels could be a costly mistake.
Nora Johnson’s 13 critically acclaimed psychological suspense crime thrillers, including the latest ‘The Girl across the Lake’ (www.nora-johnson.net), all available online at Amazon etc. Profits to Cudeca cancer charity.