Feb 27 • 12:27 UTC 🇩🇪 Germany FAZ

Spanish Economy: How Migrants Revitalize the Economy

Migration has positively impacted Spain's economy, leading to growth and historically low unemployment rates, although some issues remain unresolved.

Spain has seen an unprecedented number of migrants in recent years, contributing significantly to the country's economic growth and helping drive unemployment to its lowest levels in history. Contrary to fears that migrants would take jobs away from locals, evidence shows that they actually bolstered economic activity, allowing Spain to emerge as a 'Iberian Tiger' in the European economic landscape. The National Statistics Institute (INE) reported that Spain's economy grew by 2.8% last year, and the Ibex stock index became the most successful in Europe in 2025, with nearly a 50% increase.

However, despite these positive trends, Spain still faces unresolved issues tied to migration. While the influx of migrants has benefited the economy overall, concerns regarding integration, social services, and housing affordability are rising. The ability of the country to manage these challenges will be critical as it continues to navigate the economic benefits brought by a diverse workforce.

As Spain stands as a prime example within the EU of how immigration can spur economic growth, its experiences may offer lessons for other countries grappling with similar migration patterns. Policymakers must balance the positive contributions of migrants while addressing the systemic issues that may arise and ensuring that economic benefits are distributed equitably among all residents.

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