In a Europe bogged down in economic stagnation, Spain continues to stand out as an exception, thanks in particular to immigration, which is boosting growth in several segments.
“Spain alone accounts for nearly 40% of eurozone growth,” the head of government Pedro Sánchez recently boasted before Socialist activists gathered in Malaga. A triumphalist speech backed up by the figures. The year 2025 in Spain ended with gross domestic product (GDP) growth reaching 2.7%, according to the government. A result that confirms the forecasts of major international institutions. The OECD (Organisation for Economic Co‑operation and Development) even put it at 2.9%, while anticipating a moderate slowdown to 2.2% in 2026.
These performances make many European partners, barely able to avoid recession, green with envy. But behind this dynamism, one factor is becoming increasingly clear in the economic debate: immigration, which has become one of the central and often underestimated pillars of Spanish prosperity.
The labour market clearly illustrates this reality. In 2024, according to the Bank of Spain, more than 75% of the new jobs created went to foreign workers. This trend continued in 2025, against a backdrop of labour shortages in many sectors. Result: a record level of registrations with the Social Security system, a historically low unemployment rate of 10.1%, and the prospect, mentioned by the Bank of Spain, of dropping below the symbolic 10% threshold within two years.
Long seen as a country marked by endemic unemployment and low productivity, Spain has radically changed its face. While tourism remains a pillar, still accounting for 15.6% of GDP, growth increasingly rests on high value‑added sectors, largely fuelled by skilled immigration.
As the business daily El Economista points out, exports of non‑tourism services—engineering, IT, finance, architecture—are now recording the strongest growth. These activities represented barely 2.5% of GDP in 1995, compared with 7.5% today. This transformation has been made possible by the digitalisation of the economy, the growing competitiveness of Spanish companies, but also by the massive arrival of foreign talent, including Algerian graduates.
“A significant share of migrants settled in Spain are highly qualified: programmers, engineers, doctors,” observes Adrian Prettejohn of Capital Economics.
In a country facing the rapid ageing of its population, this foreign workforce not only supports growth. It also keeps entire segments of the productive and social system afloat.
Spain also benefits from significant cyclical advantages. Its industry suffers less than others from energy costs, thanks to the rise of renewables. Whereas in 2018 electricity was 31.5% more expensive than the European average, it is now 20.9% cheaper in Spain. The country is also less exposed than its neighbours to trade tensions between the United States and China.
But this improvement should not hide persistent fragilities. Several textile companies have recently gone bankrupt, unable to compete with low‑cost Asian platforms or with the boom in the second‑hand market. Public debt, although down from 124% to 103% of GDP in five years, remains a source of vulnerability. “Current growth protects us, but it will not be enough forever,” warns economist Diego Martínez López of the University of Seville.
Another point of concern is the housing crisis. Property prices have exceeded their pre‑2008 crisis level, threatening purchasing power, consumption and even the country’s attractiveness for migrants themselves, who are nonetheless essential to its economic momentum.
For many economists, the Spanish “success story” therefore rests on a delicate balance. Without the contribution of immigration, current growth would quite simply be impossible. But without deep structural reforms—particularly on pensions, taxation and housing—this momentum could eventually run out of steam.
As Juan Bravo, close to the Popular Party, sums it up: “Spain is buying time thanks to growth and immigration, but it has still not answered the challenge of its ageing population.” A warning that reminds us that, behind the flattering figures, the Spanish economy is moving along a razor’s edge.