Spain´s economy is defying the broader European trend of economic slowdown, according to a recent article in the prestigious American publication Fortune. The author, Jorge Lluch, presents a bold analysis of why Spain is not only growing but outpacing its European neighbours and even the United States.
Lluch suggests that Spain’s economic rise over the last decade has been nothing short of “vertiginous”, predicting it will be the fastest-growing advanced economy globally by the end of this year.
Growth outpaces the Eurozone
The Spanish economy is projected to grow at a rate three times that of the eurozone overall, says Lluch. This could eclipse the growth rates of the United States. Traditionally, Spain’s growth has been credited to sectors such as tourism, immigration, foreign investment, and public spending. However, as Lluch points out, these are only part of the story. Drawing on his experience as the co-founder of a successful expanding business, he offers additional insights into the driving forces behind this remarkable surge.
Also read: Spain named top OECD economy by the Economist
Universities and startups at the heart of innovation
Despite Spain’s lower investment in research and development compared to the EU average—1.44% of GDP in Spain versus 2.27% in the EU—its universities have increasingly become hotbeds for advanced research in fields like artificial intelligence, robotics, cybersecurity, and renewable energy. “Spain is attracting not only local talent but also a growing number of executives from across Europe and beyond,” Lluch writes, applauding the country’s rising appeal in the tech world.
The 2022 Startup Law
The 2022 Startup Law, Lluch argues, has been pivotal in creating a more favourable legal and financial environment for new companies. Its effects have not only simplified the path for local entrepreneurs but also drawn in increased foreign investment. “The capacity of Spain to attract international investors is growing by the day,” Lluch notes, pointing to the burgeoning recognition that high-growth companies with global ambitions can indeed be built in Spain.
Challenges still loom on the horizon
Despite these promising trends, Lluch is quick to point out that Spain still faces challenges. While overall GDP growth might lead globally, Spain’s collective economic influence remains limited, with GDP per capita lagging behind. Boosting the potential of Spain’s tech startups could help address some of these economic imbalances, Lluch suggests.
“The Startup Law was a step in the right direction, but we must go further,” he argues. Lluch concludes with a call for Spain to be “bolder and braver”. He is encouraging greater entrepreneurship to foster innovation, job creation, and sustained economic growth. “If Spain truly wants to be the economic jewel in Europe’s crown, we need to aim higher.”
Also read: Brussels raises growth forecast for Spain´s economy