July 16, 2024 | 5:12

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Why is Spain growing more than the other EU countries?

Jesus Carames

June 16, 2024 | 12:04 pm

Service exports: a key driver

Spain stands out in Europe for its notable economic growth, surpassing most of the countries in the European Union (EU). Various factors contribute to this phenomenon, including service exports one of the most significant. The recovery of the tourism sector after the pandemic has been a fundamental pillar for this expansion. Spain, a global tourist destination, has seen the arrival of foreign tourists increase significantly, reaching figures close to pre-pandemic levels. In 2023, the country welcomed more than 85 million tourists, a number that continues to rise.

El It not only generates direct income, but also boosts related sectors such as hospitality, transport and commerce, creating a multiplier effect in the economy. Furthermore, the service exports They are not limited to tourism; Sectors such as consulting, engineering and technology have also experienced sustained growth, consolidating Spain as a key supplier in the international market.

Record of employed people and public spending

Another decisive factor in the economic growth of Spain is busy record. The Social Security affiliation has reached historic levels, with more than 21,32 million people employed in May 2024. This increase in employment not only reduces the unemployment rate, but also increases the domestic demand, since more people with jobs means greater consumption and dynamism in the economy.

El public spending has played a crucial role in this context. The government's expansive policies, aimed at promoting employment and supporting the sectors most affected by the pandemic, have been decisive. Economic stimulus programs, investments in infrastructure and support for small and medium-sized businesses have created a favorable environment for growth. These efforts are reflected in the Gross Domestic Product (GDP), which has grown by 0,7% in the first quarter of 2024, placing it above the European average.

Strength of public spending

El public spending Not only has it been key in the post-pandemic recovery, but it has also been fundamental in maintaining economic growth. Investments in infrastructure, education and health have created a more resilient environment prepared to face future challenges. Furthermore, the policies of innovation support and digitalization have allowed Spain to quickly adapt to the new demands of the global market.

In summary, the tourism boom, busy record and strength of public spending are fundamental elements that explain why Spain grows at a faster rate than the rest of the countries in the UE. These factors, combined with a favorable political and economic environment, position the country as a benchmark in terms of economic growth y sustainable development.

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