A serious debate is unfolding in Spain over the national economy and its rapid growth. On the one hand, macroeconomic data show an almost flawless performance: growth three times higher than the eurozone average, unemployment at its lowest level in decades and massive job creation.
On the other hand, this growth brings little benefit to much of the population. It is an extensive form of growth, from which those who have just entered and integrated into the labour market benefit most, while it also creates serious tension in the housing market and in public services such as education and healthcare.
The Spanish economy is surprising international analysts
Nevertheless, more and more people, impressed by the figures, are talking about a Spanish economy that continues to surprise the world and dares to go against the current in order to make the most of labour resources coming from abroad.
One proof of this is Spain’s economic leap – the “country of bars” – which has overtaken South Korea, a country of technology and artificial intelligence. The latest major outlet to highlight this phenomenon was the prestigious American agency Bloomberg.
According to data from the International Monetary Fund (IMF), in 2025 Spain overtook South Korea both in GDP per capita and in total GDP, allowing it to return to the world’s top 12 economies.
This happened 11 years after Spain lost this position to a country that seemed determined to become one of the richest in the world – a new power born from an economic miracle unprecedented on a global scale and apparently strengthened by powerful production of memory chips needed for artificial intelligence.
From the consequences of the 2008 crisis to a new economic leap
By contrast, Spain suffered the consequences of the historic financial crisis of 2008, which lasted until 2013–2014 because of the aggravating factor of the real estate bubble.
However, against all forecasts, Spain’s economy is now growing with clear momentum, while South Korea is on a kind of roller coaster, fluctuating according to the behaviour of the artificial intelligence market and financial markets.
Since 2021, Spain’s economy has been growing at a pace at least three times higher than that of the eurozone, thanks to the services sector and active job creation, a significant share of which is temporary. This growth has been fuelled and developed by the influx of immigrants, primarily from Latin America, which has also sparked serious analytical debate abroad about the Spanish model.
Spain has joined the club of economies with GDP above 2 trillion dollars
As noted earlier, Bloomberg’s analytical article states that Spain’s economic growth “continues to reach new milestones”, with growth rates exceeding those of G7 countries and unemployment at its lowest level since January 2008.
Nevertheless, the question arises as to whether this new upswing can become sustainable or whether, as before the 2008 financial crisis, it hides imbalances that will ultimately affect the economy.
In any case, Spain has managed to join the “club” of 12 countries with GDP of 2 trillion dollars. According to the latest IMF data, Spain’s total GDP exceeds 2.09 trillion dollars, while the GDP of South Korea, a leader in artificial intelligence, remains at 1.93 trillion dollars.
Demographics, immigration and tourism as growth factors
Population growth has had a direct impact on economic activity in Spain, increasing from 36 million people half a century ago to almost 50 million today. This is the largest percentage increase among the five largest economically developed countries in the European Union.
This demographic growth has increased the working-age population, stimulated consumption and boosted tax revenues. In addition, around 80% of the jobs created in Spain since 2022 are held by workers born abroad, which is the main explanation for the recent dynamics of the labour market.
Tourism has become another important growth factor. The sector already accounts for around 13% of the Spanish economy and has broken records again this year, helped by the influx of tourists avoiding the Middle East because of the military conflict.
This sharp increase in demand did not lead to an uncontrolled surge in inflation, although it is true that inflation in Spain is rising faster than in the rest of the eurozone, which also represents a serious threat. This is partly due to the high share of renewable energy in Spain’s energy system, which softened the impact of higher energy prices.
Economic growth increases pressure on housing and infrastructure
Despite such solid indicators, this model also has significant limitations. Tension in the housing market is already evident and shows that the pace of population growth may exceed infrastructure capacity.
Some analysts describe Spain as “a country with a population of 50 million whose infrastructure is designed for 40 million”, while public investment remains below the European average and the end of funding from European recovery funds will force the country to face new budgetary and structural challenges.
The main challenge is labour productivity
In the long term, Spain’s main difference from South Korea is expected to remain labour productivity.
Although Spain is beginning to invest in artificial intelligence and technological development, through public investment such as taking a stake in the chip manufacturer Openchip, known as the “Catalan Nvidia”, labour productivity per worker and per hour worked remains significantly lower than in South Korea and other EU countries such as Germany, the Netherlands and the Nordic countries.
Therefore, the recent success shows that Spain has prospered “without AI, no problem”, but to sustain this growth in the coming decades it will have to stimulate innovation and substantially increase the productivity of its economy.
