Spain has stopped being seen as a lagging country and has become one of Europe’s benchmarks for competitiveness. This is highlighted by the “Future Readiness Index for Europe”, presented by the international consulting firm Roland Berger at the World Economic Forum in Davos.
Economic growth and the impact of reforms
Spain’s economy grew by 3.2% in 2024 and, in the coming years, may sustain growth of around 2% per year if it maintains the pace of reforms. After the 2008 financial crisis, Spain implemented “painful” reforms that helped restructure the economy and strengthen competitiveness. Greater labor-market flexibility, moderate wage growth, and a set of structural reforms became key factors behind the country’s improved position in Europe.
Diversification: not just tourism
The study shows that Spain has managed to diversify its economic model beyond tourism and stimulate the development of sectors such as technology and engineering. Exports of non-tourism services already generate more revenue than tourism and account for about 8% of GDP, reducing reliance on the traditional tourism sector.
Renewable energy as a competitive advantage
Roland Berger also emphasizes the role of affordable renewable energy as a competitive advantage for Spanish industry. Significant investments in wind and solar power have helped lower energy costs and improved the country’s position for attracting new investments into energy-intensive industrial sectors.
What matters to consolidate success
Despite the progress, the report includes a warning that Spain must continue to deepen reforms if it wants to strengthen its new status in Europe. Cutting bureaucracy and carrying out reforms in the education system are necessary conditions for maintaining growth at around 2% per year in the medium term.
Europe’s position: digitalization, innovation, and regulation
For Europe, the report concludes that after several years of deterioration, certain positive changes are emerging. However, Europe still lags behind the US and China in digitalization and innovation — especially in artificial intelligence (AI) and patents. A decline in the flexibility of the European economy is driven by rising public debt and an increasingly complex regulatory framework, which also restrains investment.
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