Spain's economy is showing remarkable growth, with an annual increase of around 3% per year since the fourth quarter of 2023. This makes Spain the fastest growing economy in Europe, in stark contrast to the stagnation experienced by other major European countries such as Germany, France and Italy.

This growth can be attributed to a combination of factors. On the one hand, Spain benefits from a strong service sector, thanks in particular to the booming tourism, and the financial support from European funds after the pandemic. However, recent research by JP Morgan points to another, less highlighted factor: the successful integration of Latin American immigrants.

Between 2022 and 2024, Spain welcomed almost 750,000 migrants, mainly from Colombia, Peru and Venezuela. The rapid integration of this group is due to the shared language, culture and history, which makes the adaptation to Spanish society relatively smooth. These new migrants bring valuable skills and a strong work ethic, resulting in an increase in the number of workers, especially in sectors such as tourism, technology and services. In addition, there is a growing number of highly educated migrants, which stimulates the demand for qualified personnel.

In addition to the contribution of immigrants, the services sector is a key driver of the Spanish economy. Tourism is experiencing a revival, with an 8% increase in foreign visitors in 2024 compared to pre-pandemic levels. Other export-oriented services, such as consultancy, financial services and IT, are also flourishing, increasingly positioning Spain as a major player in the international services market.

Spain’s future looks bright. The influx of migrants is expected to continue, which is essential to counter the ageing of the Spanish population and to supply the labour market with the necessary workers. Spain’s relatively low energy prices also contribute to economic growth. Despite challenges such as the need to reduce government spending and overhaul the tax system, Spain is in a strong position within the eurozone. The successful integration of Latin American migrants, combined with a thriving service sector, gives the Spanish economy a solid basis for further growth.