By Adam Woodward •
Updated: 28 Nov 2024 • 9:30 • 2 minutes read
Spain s economic growth rate is about to surpass that of any other major advanced economy in the world this year, and it s all attributable to tourism, immigration, foreign investment, and public spending.
However, the country faces the perennial challenges of a low GDP per capita, which is well below the EU average and even less than pre-COVID, and great financial crash levels, making it vulnerable to world events and potential future economic crashes.
Spain s universities are increasingly becoming centres for advanced research in fields like AI, robotics, cybersecurity, and renewable energy, while new rules regarding start-ups have enabled a more favourable legal and financial framework for emerging companies, creating a more accessible environment for local entrepreneurs and attracting more foreign investment. The country’s ability to attract international investors is growing with companies and countries, not least with recent deals with China. But, more needs to be done.
While year-on-year business growth may be outstripping all of Spain’s neighbours, because of low wages, disposable income per capita still lags relative to overall GDP, leading to individual poverty, high youth unemployment rates, and a severely widening chasm between haves and have-nots.
Spanish economic growth under threat
Culturally and traditionally, Spain has always been a country of the self-employed, or of small and medium-sized enterprises (SMEs). As well, it has historically been known to experience far more pronounced booms and busts than many of its neighbours, as was demonstrated with the last great economic crisis and the pandemic.
To ward off potential threats from economic turbulence, more needs to be done to foster SMEs who can potentially diversify their international clientele, spreading the national economic risk rather than centralising it in state-run institutions and massive corporations. This can be done by providing more incentives and by lessening the bureaucracy and costs that start-ups face.
Spanish economic strength lies in encouraging innovation
Bulgaria has, for example, relatively low bureaucracy in setting up a business, which takes only a couple of weeks, and has very low administrative costs compared to the rest of Europe and also only 10 percent corporate tax.
Statistically, the UK has 360,000 new businesses established every year. Forming a company is quick, easy, and cheap, with postal applications being processed within eight to 10 days and online applications within 24 hours.
And in Finland, the self-employed and SMEs pay no social security and very little tax in their first year.
To maintain, or even plateau, Spain’s economic boom, Spain needs to be bolder and braver, actively encouraging entrepreneurial endeavours in a drive for more innovation, a healthier supply of jobs, more sustained growth, and to retain its talent, better remuneration.
Sign up for personalised news
Subscribe to our Euro Weekly News alerts to get the latest stories into your inbox!
By signing up, you will create a Euro Weekly News account if you don’t already have one. Review our
Privacy Policy for more information about our privacy practices.
Passionate about music, food and the arts. After being completely immersed in the Spanish way of life for 25 years, I now share my knowhow and experience with you.
Leave a comment Cancel reply
Your email address will not be published. Required fields are marked *
Website
Comment for robots
Known as the PEOPLE’S PAPER, Euro Weekly News is the leading English language newspaper in Spain. And it’s FREE!
Covering the Almeria, Axarquia, Costa Blanca North, Costa Blanca South, Costa del Sol , Costa Calida, Mallorca and beyond, EWN supports and inspires the individuals, neighbourhoods, and communities we serve, by delivering news with a social conscience. Whether it’s local news in Spain, UK news or international stories, we are proud to be the voice for the expat communities who now call Spain home.
With around half a million print readers a week and over 1.5 million web views per month, EWN has the biggest readership of any English language newspaper in Spain. The paper prints over 150 news stories a week with many hundreds more on the web – no one else even comes close.
Our publication has won numerous awards over the last 25 years including Best Free Newspaper of the Year (Premios AEEPP), Company of the Year (Costa del Sol Business Awards) and Collaboration with Foreigners honours (Mijas Town Hall). All of this comes at ZERO cost to our readers. All our print and online content always has been and always will be FREE OF CHARGE.
Sign up for personalised news
Subscribe to our Euro Weekly News alerts to get the latest stories into your inbox!
By signing up, you will create a Euro Weekly News account if you don’t already have one. Review our Privacy Policy for more information about our privacy practices.
Close
