Spain, the world's 12th largest economy, but per capita income lags behind

Spain, the world's twelfth-largest economy: success or mirage?

What lies behind the headline that Spain is the world's twelfth-largest economy? For some, proof of stability in a stagnant European environment. For others, a mirage concealing a fall in the rankings and growth driven by demographics rather than productivity.

Critics point out that Spain once ranked eighth and now has to settle for twelfth. Total GDP is rising, but the population also grew by 10% in eight years, which dilutes any improvement in per capita income. That is the figure that "hasn't been mentioned in a long time", according to an analysis that compares Spain's pogre with that of developing countries.

The mirage of total GDP

If you look at wealth per inhabitant, the picture changes. While Spain grows thanks to the demographic effect, other European economies grow through the added value of their productive sectors. The case of Eastern European countries, which twenty-five years ago sent workers to Spain and now buy prime beachfront properties on the Spanish coast, illustrates the different quality of growth.

Taxes, debt and productivity

The other line of criticism targets the weight of the public sector. Taxes and debt keep rising while productivity remains stagnant. The comparison with the promise of a "Champions League" economy, launched during Zapatero's time in office, seems inevitable: more expensive housing, wages with less purchasing power and a state that "fleeces the rower even more".

The wound of distribution

Some go further and argue that the problem is not the size of the pie but how it is shared out. References to 1936 as the starting point of an unequal distribution run through much of the debate. The issue, in any case, is not new: when the rankings are used as a smokescreen, it is worth asking who really benefits from growth.

Meanwhile, "top 12" headlines adorn front pages. People's wallets may not have received the notification.