The Economist crowns Spain the fastest growing economy in the developed world in 2024 – but has the wealth been spread evenly?

SPAIN has been declared the strongest economy of 2024, topping the OECD rankings for its remarkable economic growth, low unemployment, and controlled inflation, according to The Economist.

The prestigious British publication attributes this success to a booming labour market and high immigration levels, projecting economic growth to surpass 3% this year. 

This cements Spain’s role as the economic leader of a resurgent Mediterranean, alongside notable gains in Greece and Italy.

Unemployment in Spain has fallen to its lowest level in over a decade, a trend echoed in neighbouring Southern European countries. 

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The Economist also highlighted Spain’s ability to maintain stable core inflation, avoiding the spikes seen in the UK and Germany.

While not leading in financial market performance, Spain’s relative stability contrasts with the downturns seen in other nations. 

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It also managed to balance its budget, distinguishing it from countries with mounting deficits.

However, challenges remain. Growth in GDP per capita has lagged behind total GDP, suggesting the benefits of economic expansion are not yet evenly distributed – a telltale sign illustrated by the growing frequency of nationwide protests against Airbnb and mass tourism.

Spain’s tourism and housing markets have been driving its growth, both seeing double-digit rises in the past year.

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But the ascendancy of both has raised issues of a growing ‘turistocracy’, in which the benefits are concentrated in the hands of a few while exacerbating a housing crisis among the have-nots.

However, Spain’s overall economic rise stands in stark contrast to traditional powerhouses like Germany and the UK, which are grappling with weak manufacturing and high energy costs. 

Southern Europe, once viewed as an economic laggard, is now enjoying a well-earned revival.

“Their economic resurgence deserves a celebration,” the article concludes, reflecting the region’s transformation from a struggling periphery to a thriving hub of growth.

This recognition reinforces Spain’s place on the global economic stage, highlighting its progress as a model of post-pandemic recovery in Europe.