Spain has become a prominent economy of Europe

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Spain is a rare bright point between the economies of Europe, which is wrong. Since the beginning of 2024, the Spanish economy has grown at an annual rate of 3 percent, compared to a little more than 1 percent in the euro area as a whole. In recent weeks, the S & P Global Ratings upgraded its credit rating, and the Bank of Spain raised its growth forecast for 2025 to 2.6 percent-which emphasizes the country’s position as the fastest major economy in Europe, and one of the most powerful world.

A mixture of factors has pushed its growth. Tourism recover from the epidemic. The government spends grants from the European Union’s European Union Fund to improve infrastructure; Spain is the second largest beneficiary. The cheap renewable energy also attracted foreign direct investment. Previous reformsIncluding an initiative in 2021 to enhance the stability of employment, also helped.

But the largest engine in Spain was immigration. While other European countries were keen to tighten their borders, Spain adopted a more liberal approach. Since 2022, a average annual flow of clear is around 600,000 immigrantsAnd the quantity was of working age. The expanding working group prompted the work to record higher levels and helped Spain avoid some shortcomings in the intense skills that afflicted its European peers. The population boom also strengthened consumer spending.

A large part of the new arrivals came from Latin America. In 2023, immigrants from the region accounted for about 70 percent of the increase in the population of Spain, according to JPMorgan. The common language, cultural similarities and current networks helped merge them into the labor market, and accept society on a wider scale. The increase in migrants to continue. Spain has recently expressed legal immigration methods and has plans to grant residency and permits to work for more uncomfortable immigrants.

Despite all its success so far, the growth boom of migrants carefully drives must be managed. First, although Spain’s real gross domestic product, on the basis of equivalence in purchasing power, has risen by about 6.8 percent since 2019, in terms of individual, has grown only 3.1 percent. Migrants mainly fill the gaps in the low -added sectors, including hospitality and construction. To ensure the growth of living levels as well, the growth of poor productivity in Spain also needs to improve it.

the The International Monetary Fund recommends Simplify the regulations and provide tax incentives to increase the availability of long -term capital, especially to enhance small companies. Upskilling initiatives will also support growth and attract more foreign direct investment in high -quality services sectors, including financing, consulting and engineering. actually, The unemployment rate in Spain It is still the highest in the European Union.

Second, policy makers must expect the broader social and economic issues that may hinder the sustainability of high migrant flows. Most Spanish people support immigration. But if the government fails to provide adequate support to access housing and public services at reasonable prices, openness may diminish to strangers. The rents cannot be tolerated for many, and there were rings of turmoil between the locals and people of North Africa.

However, the segmented political environment in Spain will be a big obstacle to building its economic progress. The minority government of Ministers, Pedro Sanchez, has struggled with the government of minister, Pedro Sanchez, to pass major legislation. This is a shame. Spain has shown other advanced economies how migration could be an important source of economic flexibility, even in the period of instability at home and abroad. To remain an ideal model, Spain needs to convert its demographic clarity to permanent prosperity.