Tom Ewart Smith
SPAIN has been highlighted as one of the world’s emerging economic success stories.
In a recent article, the Financial Times referred to the nation as a ‘new economic star.’
Ruchir Sharma, chair of Rockefeller International, writes that, for Spain, the Eurozone crisis of the 2010s, and the more recent pandemic, forced significant fiscal reforms.
READ MORE: Why Spain’s economy will ‘keep on shining’ in 2025, according to experts at Oxford Economics
These changes have now contributed to its current recovery.
The country implemented measures such as reducing benefits for pensioners while increasing aid for its impoverished population, leading to a decrease in deficits and public debt.
Spain’s economic recovery also stands out due to its response to demographic challenges.
While many European nations are tightening borders, Spain has adopted policies to attract immigrants and has eased labour market regulations to address labour shortages, a key factor for long-term economic stability.
Spain is part of a broader trend in which nations, often after crises, have restructured their economies and started to see positive results.
Sharma points to Spain, Greece, Argentina, South Africa, Nigeria, and Sri Lanka as notable examples.
These six countries ‘were forced to reform because their finances were stretched thin by the pandemic,’ the author says.
“The recovery is visible in rising stock markets and improving credit conditions,” he claims.
The Financial Times highlights that while no country is without its flaws, nations undergoing deep reforms are showing signs of long-term recovery.
The rise of Spain, alongside others, reflects the ongoing cycle of economic renewal, where nations are reemerging as economic players after periods of crisis.
