Spain's growth is driven by immigration, but GDP per capita stalls
Spain leads EU growth thanks to immigration, but GDP per capita reveals a less flattering reality: stagnant productivity, rising debt and…
English · Original discussion in Spanish · Published
What lies behind Spain's lead in European growth?
Spain tops the EU growth league, but that figure hides a catch: GDP per capita is rising at a much slower pace. According to the analysis in El Mundo's article, the migration boom is the main driver: inflows of immigrants have boosted employment and consumption, without reducing opportunities for native workers, the supervisor notes. Yet the mirage fades when you look at income per inhabitant.
Growth at the expense of productivity
Immigration has been positive for total GDP, but its entry into the labour market has held back productivity and, as a result, wage growth. While employment expands, value added per worker stagnates. Add to this a growing debt burden and possible distortions in the national accounts that some analysts point to as a hidden deficit.
The debate over who benefits
Absolute growth mainly benefits large companies, banking, hospitality and utilities, according to critics who see this model as a Ponzi scheme. For the native population, housing is becoming more expensive, social cohesion is suffering and social mobility is grinding to a halt. The PSOE (Spain's centre-left Socialist Party), they argue, prioritises this model for demographic and electoral reasons.
The final note
So yes, Spain is growing. The question is: who gets to eat the pie?
Spain tops the EU growth league, but that figure hides a catch: GDP per capita is rising at a much slower pace. According to the analysis in El Mundo's article, the migration boom is the main driver: inflows of immigrants have boosted employment and consumption, without reducing opportunities for native workers, the supervisor notes. Yet the mirage fades when you look at income per inhabitant.
Growth at the expense of productivity
Immigration has been positive for total GDP, but its entry into the labour market has held back productivity and, as a result, wage growth. While employment expands, value added per worker stagnates. Add to this a growing debt burden and possible distortions in the national accounts that some analysts point to as a hidden deficit.
The debate over who benefits
Absolute growth mainly benefits large companies, banking, hospitality and utilities, according to critics who see this model as a Ponzi scheme. For the native population, housing is becoming more expensive, social cohesion is suffering and social mobility is grinding to a halt. The PSOE (Spain's centre-left Socialist Party), they argue, prioritises this model for demographic and electoral reasons.
The final note
So yes, Spain is growing. The question is: who gets to eat the pie?
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (23 replies).
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