Spain’s Economy Booms as Centre-Left Government Eyes Migration Reform
Spain’s centre-left government, led by Social Democrat Prime Minister Pedro Sanchez, is charting a distinct course for the country’s economic future. According to a report, the Spanish economy experienced the fastest growth amongst rich nations last year, with a GDP growth rate of 3.2%. This impressive figure surpasses that of the United States, and is three times that of the UK and four times the EU average.
The country’s strong economic performance has been highlighted by Sanchez as a key indicator of his government’s success. He believes that his plan to legalise nearly a million migrants currently working in Spain without legal papers will maintain economic growth and ensure future pension payments are covered. As reported, the extra tax revenue generated from these migrant workers, combined with the much-needed labour to fill gaps in the market, will be crucial in supporting the country’s economy.
Spain is facing a significant challenge in terms of its ageing population, with one of the lowest birth rates in the EU. The country’s society is rapidly ageing, with almost half of its towns at risk of depopulation, as stated by Sanchez in autumn 2024. He emphasised that "we have elderly people who need a caregiver, companies looking for programmers, technicians and bricklayers… The key to migration is in managing it well." This highlights the need for a balanced approach to migration, one that addresses the country’s labour market gaps while also ensuring that public services are not strained.
However, critics accuse Sanchez of encouraging illegal migration to Spain and question the country’s record on integrating migrants. According to a public pollster 40dB, 57% of Spaniards believe that there are already too many migrants in the country. Despite this, opinion polls have not translated into widespread support for the immigration sceptic nationalist Vox party. In fact, the number of foreign-born inhabitants in Spain has jumped almost nine-fold in less than 30 years, from 1.6% to 14% of the population.
The Sanchez government is attempting to take a proactive approach to managing migration, setting up what Professor Pace describes as a "national dialogue" involving NGOs and private businesses. The aim is to balance plugging labour market gaps with avoiding strains on public services, by using extra tax revenue from new migrant workers to build housing and extra classrooms, for example. As the BBC reports, this plan is still in its early stages, and it remains to be seen whether it will be successful.
As Spain continues to navigate the complexities of migration and economic growth, Sanchez’s government will be closely watched by observers around the world. With the country’s economy currently outperforming many of its European counterparts, the centre-left government’s approach to migration reform may provide valuable lessons for other nations facing similar challenges. According to the BBC, only time will tell if Sanchez’s gamble pays off, and if his vision for a more inclusive and economically vibrant Spain becomes a reality.
The proposal to legalise nearly a million migrants has sparked debate, with some arguing that it will help address the country’s labour shortages and support economic growth. As the BBC notes, Sanchez’s government is keen to stress that the plan is not simply about increasing the workforce, but also about ensuring that migrant workers are integrated into Spanish society and have access to the same rights and services as citizens. With the country’s population ageing rapidly, the need for a sustainable and balanced approach to migration has never been more pressing.
Further economic analysis from this report also says Sanchez government will be looking at Prof Pace calling it a "national dialogue", As reported a relationships will proced.
