Spain's migration policy fuels economic growth
The country’s open approach to migration has contributed to rapid economic expansion, helping to fill labour shortages and sustain the welfare system
Spain has emerged as Europe’s economic standout, with its economy growing at a pace that outstrips many of its neighbours. According to a report by The Guardian, a key driver behind this surge has been the country’s notably different approach to migration.
Unlike other European nations that have taken a restrictive stance, Spain has embraced migration as both a humanitarian necessity and an economic strategy.
Last year, Prime Minister Pedro Sánchez made a compelling case in parliament, stating that Spain faced a choice: remain open and prosperous or close itself off and suffer economic decline. With one of the lowest birth rates in the EU, he argued that migration was essential for sustaining the welfare state and driving economic growth.
The results seem to support his view. Spain’s economy grew by 3.2% in 2024, far surpassing Germany’s contraction of 0.2% and outpacing France, Italy, the UK and the Netherlands.
Analysts attribute this to several factors, including an influx of workers filling key labour market gaps, record-breaking tourism figures and a push towards renewable energy that has kept energy costs relatively low.
A significant part of this success is linked to migration. In 2024, of the 468,000 jobs created, around 409,000 were taken by migrants or people with dual nationality. Many of these workers came from Latin America, Europe and Africa, helping to counteract Spain’s ageing workforce.
The positive economic impact of migration is not unique to Spain. Studies across Europe and the US have shown that well-managed migration boosts productivity, increases income per capita and contributes more in taxes than it costs in social benefits.
The Organisation for Economic Co-operation and Development (OECD) has long argued that migration, when properly handled, strengthens economies by sustaining workforce numbers and pension systems.
Spain’s government has pledged to invest in integrating migrants, from streamlining residency applications to helping them secure stable, well-paid employment. This careful management is key, as economists warn that failure to integrate newcomers effectively could lead to social tensions, particularly in areas such as housing.
Despite its current success, some analysts caution that Spain’s approach will need time to prove itself fully. While the country has seen rapid economic benefits, comparisons have been drawn with Denmark, where migration initially seemed beneficial but later became a contentious political issue.
The challenge for Spain will be to maintain public support and avoid the rise of populism that has characterised migration debates in other European nations. It is also worth noting that irregular migration to Spain dropped by 38.5% so far in 2025 in comparison with the same period in 2024.
For now, though, as The Guardian reports, Spain’s strategy stands in stark contrast to the restrictive policies of countries such as Italy, France and Germany.
If its current trajectory continues, it may serve as a model for how migration can be leveraged as a tool for economic prosperity rather than as a political battleground.
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