Spain has been recognized as the top-performing economy of 2024 among OECD countries, according to the renowned British financial publication The Economist. Outperforming over 30 developed economies, Spain leads the ranking ahead of Ireland and Denmark, while major economies such as Germany, France, and the United States trail far behind.
Strong Indicators Drive Spain’s Success
Spain’s economic strength is attributed to impressive performance across key areas: GDP growth, inflation control, employment rates, stock market development, and deficit reduction. The country’s GDP is expected to grow by more than 3% in 2024, fueled by a robust labor market and increasing economic activity driven by immigration.
The long-standing issue of high unemployment in Spain has seen significant improvement. The OECD projects unemployment to decline further, from 11.5% in 2024 to 10.9% in 2025. This decline, combined with rising household incomes, has created a strong foundation for private consumption growth.
Low Inflation and Increased Investments
While many European nations grapple with high inflation, Spain’s inflation rate is expected to stabilize at an average of 2.8% in 2024 and decrease to 2.1% in 2025. With steady wage growth and improved purchasing power, households are expected to increase consumption by 2.7% in 2024.
Spain is also reaping the benefits of increased investments, supported by the EU Recovery Plan and lower financing costs driven by the European Central Bank’s policies. Investment in sustainability, digitalization, and technology is strengthening the country’s long-term competitiveness.
Export Growth and Fiscal Discipline
Exports play a key role in Spain’s economic success. While tourism remains a major contributor, exports of technology and high-value services have reached record levels. Simultaneously, Spain has reduced its dependence on energy imports, making the economy more resilient to global price shocks.
On the fiscal side, Spain’s budget deficit is steadily shrinking. The OECD predicts a reduction to 2.5% of GDP in 2025, achieved through strict budget control and public spending adjustments totaling €12 billion.
A Bright Future Despite Challenges
Spain’s economic performance is particularly noteworthy given challenges such as climate-related events, including recent floods in Valencia, and the broader weakness in the Eurozone. While the average GDP growth in the Eurozone is expected to reach just 0.8% in 2024, Spain stands as a beacon of resilience and recovery.
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