Spain to be fastest growing EU economy in 2026 but benefits not trickling down

"Buoyed by immigration, the Spanish economy has enjoyed positive headline figures in recent years and will continue to lead the way in the bloc in 2026, but Prime Minister Pedro Sanchez admits the benefits aren't yet trickling down to locals. Immigration and services have spurred the Spanish economy to continent-leading headline figures, but even Prime Minister Pedro Sanchez admits that these macro gains are failing to trickle down and that the purchasing power of Spaniards "is still low"."

"Spain's population recently hit a record high of 49.3 million people thanks once again to the arrival of more migrants, counteracting the country's rock-bottom birth rates and spearheading the current economic boom. In 2024, The Economist ranked Spain as the best performing economy in the world for 2024, putting it ahead of 36 other countries considered rich'. Despite the global praise and good growth rates, however, Sanchez conceded recently that these headline successes are not filtering down to working people as they should."

Spain is forecast to be the fastest-growing economy in the European Union in 2026, with GDP growth projected at 2.1 percent year-on-year, 0.9 percentage points above the EU average. Increased immigration raised the population to a record 49.3 million, offsetting low birth rates and supporting labor-supply-driven growth. The service sector shows remarkable dynamism and underpins headline performance. International rankings place Spain highly among investment destinations. Despite strong macro indicators and external praise, these gains are not adequately reaching working households, and Spaniards’ purchasing power remains low.

Read at www.thelocal.es