GDP growth in 2024 and good forecasts for the current year have led the International Monetary Fund (IMF) to include Spain once again among the twelve largest economies in the world by GDP. Behind this jump, which came after several years in 15th place, lie strong growth in the population and the workforce, a tourism boom and a small increase in productivity.
However, no one can guarantee that this cycle will last much longer, or that strong growth will significantly improve the lives of Spaniards. A large GDP may give an idea of an economy’s importance on a global scale, but it says little about the population’s quality of life. For that, other indicators are more reliable, such as GDP per capita or the Human Development Index, which the UN publishes every year.
According to 2023 data published by the IMF, Spain’s total GDP was $1.62 trillion, more than $100 billion less than that of Mexico and Australia, and almost $200 billion less than that of South Korea. According to IMF forecasts, this year it will reach $1.8 trillion, $300 billion less than that of Brazil and Russia.
The surprises do not end there: even more remarkable is that Spain will stay in 12th place until 2030. By then, the IMF estimates, the country’s population will grow by 3 million to more than 52 million people, which will increase Spain’s workforce and create new jobs. Per capita income in Spain will rise by 2030 from the current $36,000 to $42,300 a year, which will help the Spanish economy keep its 12th place in the world.
Overall, the Spanish economy ended 2024 with very positive figures, strengthening its position as one of Europe’s engines of growth. GDP grew by 3.2% over the year, well above the European average and the forecasts for the following year.
One of the main events of the year was an extraordinary rise in exports of tourism services, which reached their fastest pace in the entire historical series, excluding the years of recovery after the Covid-19 pandemic. As for Spanish household incomes, they grew by 8.7% in 2024, helped by a 5% rise in the average wage, higher employment, and increases in investment income and social benefits. At the same time, their consumer spending grew more slowly, which kept the savings rate high at 13.6% of income.
