The Spanish economy is in good shape. According to The Economist, the country ranks first in its own ranking that classifies the economies of the Organization for Economic Cooperation and Development (OECD) based on performance in the last year. The prestigious British weekly magazine highlights the resurgence of the so-called PIIGS (Portugal, Italy, Ireland, Greece, and Spain), the countries that suffered the most during the economic crisis and have made the most progress in recent years.
The study is based on a combined score that collects five macroeconomic and financial indicators: GDP, stock market performance, inflation, unemployment, and fiscal balances of 37 countries, most of them wealthy. It compares the results of the third quarter of this year with those of the last quarter of 2023 or with data from the beginning of the year and concludes that the Mediterranean European countries, long “undervalued by their northern neighbors,” are now enjoying their “economic resurgence.”
Spain is leading the way this year, a sign of recovery for the PIGS countries, which are now at the top. Following closely behind are Ireland, Greece, Denmark, and Italy. The Economist highlights Spain's “annual GDP growth, which is on track to exceed 3%, driven by a robust labor market and high levels of immigration, which mechanically boost economic production.”
The Spanish GDP is growing by 3.5%, surpassed only by Israel (6.7%) and Greece (3.7%). It is well above the weakened Germany or Italy, which are suffering from high energy prices and a slowdown in the industry. In other indicators, Spain ranks tenth in terms of stock market growth (17.1%), with a controlled increase in prices (+2.4%), placing it in twelfth position. The unemployment rate, still high in Southern Europe, has decreased by seven tenths in the case of Spain, a figure that only Italy (-1.4 points) surpasses. It is the lowest level of unemployment in Greece, Italy, and Spain in over a decade, although it still hovers around 11%-12% in the national case.
A negative point is that the GDP per capita is not growing at the same pace as the overall economy. Also, deficits and debt levels are at alarming levels, although in the case of Spain, the primary deficit, where interest payments are not included, stands at -0.6%, more restrained than in other nations.
'The Economist' takes into account the GDP, stock market performance, inflation, unemployment, and public deficit
Spain's economic performance assessment far surpasses that of other major economies in the OECD, with Canada ranking 12th, the United States 20th, Germany 23rd, Japan 25th, France 26th, and the United Kingdom 31st. The Economist deems the results of European powers like the United Kingdom or Germany as disappointing. Latvia and Estonia hold the bottom position, as they did two years ago. According to the Minister of Economy, Business, and Trade, Carlos Cuerpo, the ranking “reinforces” the country's position globally.
The article from The Economist entitled Which economy did best in 2024? analyzes the global economic performance this year, highlighting the resilience of economies in the face of significant challenges such as high interest rates, conflicts in Europe and the Middle East, and key elections in countries like the United States and India. According to the International Monetary Fund (IMF), the global GDP will grow by 3.2% this year. Additionally, inflation has decreased, employment growth remains strong, and stock markets have risen by over 20% for the second consecutive year.