Spain’s unique approach to migration and its economic success

From Madrid to Barcelona, Spain’s vibrant economy is evident in bustling restaurants, packed hotels, and a thriving service sector. Recognized by The Economist as the world’s best-performing economy in 2024, Spain’s success is attributed in part to a distinctive migration policy that contrasts sharply with other European nations.

Prime Minister Pedro Sánchez has openly championed migration as essential to the country’s prosperity. In a striking departure from restrictive policies seen in France, Germany, and Italy, Sánchez framed the issue as a choice between economic growth or stagnation. With one of the lowest birth rates in the EU, migration has become a vital strategy for sustaining Spain’s workforce and social welfare system.

Economic data supports this approach: Spain’s GDP grew by 3.2% in 2023, far outpacing Germany, France, and Italy. Key to this expansion has been an influx of both tourists—94 million visitors last year—and migrants, who have helped fill gaps in the labor market, particularly in hospitality, tourism, and other service industries. Unemployment levels have dropped to their lowest since 2008.

Several factors have bolstered Spain’s economy, including investments in renewable energy, EU pandemic recovery funds, and government policies such as pension increases and public-sector hiring. JPMorgan analysts noted that migration played a significant role, with Spain witnessing its highest net migration in a decade—nearly 750,000 people in 2022 alone. Of the 468,000 new jobs created last year, the vast majority were filled by migrants, particularly from Latin America, Africa, and other parts of Europe. The Bank of Spain estimates that migration contributed over 20% of Spain’s GDP per capita growth between 2022 and 2024.

While far-right rhetoric against migration is rising across Europe, Spain’s experience presents a counter-narrative. Countries such as Germany face demographic challenges, with aging populations creating labor shortages in key industries like healthcare and manufacturing. Studies have consistently shown that well-managed migration boosts productivity, increases tax contributions, and sustains economic growth.

Spain is now working to integrate migrants effectively, streamlining residency processes and ensuring access to quality jobs rather than low-paid, insecure work. However, experts caution that challenges remain, particularly in areas such as housing availability. If not managed carefully, rapid migration could lead to social tensions.

Spain’s success with migration is still unfolding, and the long-term outcomes remain to be seen. As debates over migration policies intensify across Europe, Spain’s experience offers valuable lessons on the economic benefits of an open and well-structured approach to immigration.