The Economist praises Spain's 2024 economy driven by immigration
The Economist ranks Spain as the world's best 2024 economy due to immigration. GDP rises, but purchasing power and rents tell a different story.
English · Original discussion in Spanish · Published
The Economist crowns Spanish economy for immigration
A headline in The Economist labeling Spain the world's best economy in 2024 thanks to immigration has sparked debate in economic circles. The British magazine, long considered the bible of Anglo-Saxon liberalism, is now viewed as partisan depending on who you ask. One fact is undisputed: migrant inflows sustain GDP growth. What remains highly contested is the cost.
What exactly does the article say?
The weekly argues that Spain leads growth among major developed economies in 2024, attributing much of this success to the demographic boost from foreign workers. The thesis is not new: a growing active population drives consumption and increases public revenue through social contributions.
Reaction in economic forums was immediate and heated. Some recall that this same outlet was the oracle for liberals until recently, now suspected of leftist bias. "The Economist is Leninism," one user summarizes. Another jokes that they accidentally published an article intended for release in 17 days.
GDP grows, wallets don't
GDP growth is one thing; the shopping basket is another. Several comments highlight the paradox: macroeconomic indicators soar while average citizens lose purchasing power. One user cites 85% chocolate costing nearly €18 per kilo at a major supermarket, despite wages frozen for 15 years with annual increases of just 0.8%.
The argument repeats with various figures: a €1,000 annual gross raise amounts to only €20 net monthly, while cars have risen 50% in a decade and grocery bills doubled in five years. The gap between official data and daily experience is likely the core of the discontent.
How much does immigration drive Spanish growth?
There is no consensus. One analysis suggests Spain grows solely on successive bubbles: first real estate, now debt and population. The argument posits that without net worker inflows, growth would collapse, and this model has an expiration date. The next debt crisis, they warn, will be severe.
On the other hand, some defend immigration as a demographic blessing in an aging country, arguing the issue isn't people arriving but housing shortages, lack of public services, and inadequate wages. A detailed breakdown reveals surprising discrepancies.
Rents: the variable nobody disputes
Almost all views converge on housing prices. Demographic pressure on rents is cited as a direct consequence: more people seeking homes, static supply, rising prices. One comment sarcastically notes that rent for a peripheral shack will rise 80% next year, forcing moves further from Madrid.
The link between immigration and housing is framed as social tension, not sole causality. Some emphasize it is a supply and land issue, not demand. Others dismiss this as poor consolation.
Debt: the elephant nobody wants to see
Spain is among the most indebted nations globally, several messages remind us. From this perspective, GDP growth is statistical makeup that fails to address underlying problems. The circulating comparison is domestic: it’s like a family borrowing €1 million, traveling, and changing cars, leading neighbors to conclude they have the best economy in the neighborhood.
The analogy is witty yet flawed. It points to an uncomfortable question: how much of Spain's growth is structural versus debt disguised as prosperity?
Who pays taxes in Spain?
Tax burden distribution is another open front. One message estimates the average employee contributes around 30% of income via income tax (IRPF), social security, and VAT, while high-net-worth individuals contribute significantly less proportionally. The counter-argument trinc quickly: the top 3% pay more in absolute terms than the middle-class 30%.
The discussion shifts to the classic dilemma: annoy the wealthy, and they leave. Someone concludes that the advantage of wealth is being welcome almost everywhere. The fiscal debate remains unresolved, as usual.
Growth that doesn't reach independence
The debate closes with an uncomfortable image: the world's best economy according to The Economist is also one where young people cannot move out because housing is a luxury good, and filling a supermarket cart costs ten days' salary.
How well does that headline hold up against a month-end paycheck?
A headline in The Economist labeling Spain the world's best economy in 2024 thanks to immigration has sparked debate in economic circles. The British magazine, long considered the bible of Anglo-Saxon liberalism, is now viewed as partisan depending on who you ask. One fact is undisputed: migrant inflows sustain GDP growth. What remains highly contested is the cost.
What exactly does the article say?
The weekly argues that Spain leads growth among major developed economies in 2024, attributing much of this success to the demographic boost from foreign workers. The thesis is not new: a growing active population drives consumption and increases public revenue through social contributions.
Reaction in economic forums was immediate and heated. Some recall that this same outlet was the oracle for liberals until recently, now suspected of leftist bias. "The Economist is Leninism," one user summarizes. Another jokes that they accidentally published an article intended for release in 17 days.
GDP grows, wallets don't
GDP growth is one thing; the shopping basket is another. Several comments highlight the paradox: macroeconomic indicators soar while average citizens lose purchasing power. One user cites 85% chocolate costing nearly €18 per kilo at a major supermarket, despite wages frozen for 15 years with annual increases of just 0.8%.
The argument repeats with various figures: a €1,000 annual gross raise amounts to only €20 net monthly, while cars have risen 50% in a decade and grocery bills doubled in five years. The gap between official data and daily experience is likely the core of the discontent.
How much does immigration drive Spanish growth?
There is no consensus. One analysis suggests Spain grows solely on successive bubbles: first real estate, now debt and population. The argument posits that without net worker inflows, growth would collapse, and this model has an expiration date. The next debt crisis, they warn, will be severe.
On the other hand, some defend immigration as a demographic blessing in an aging country, arguing the issue isn't people arriving but housing shortages, lack of public services, and inadequate wages. A detailed breakdown reveals surprising discrepancies.
Rents: the variable nobody disputes
Almost all views converge on housing prices. Demographic pressure on rents is cited as a direct consequence: more people seeking homes, static supply, rising prices. One comment sarcastically notes that rent for a peripheral shack will rise 80% next year, forcing moves further from Madrid.
The link between immigration and housing is framed as social tension, not sole causality. Some emphasize it is a supply and land issue, not demand. Others dismiss this as poor consolation.
Debt: the elephant nobody wants to see
Spain is among the most indebted nations globally, several messages remind us. From this perspective, GDP growth is statistical makeup that fails to address underlying problems. The circulating comparison is domestic: it’s like a family borrowing €1 million, traveling, and changing cars, leading neighbors to conclude they have the best economy in the neighborhood.
The analogy is witty yet flawed. It points to an uncomfortable question: how much of Spain's growth is structural versus debt disguised as prosperity?
Who pays taxes in Spain?
Tax burden distribution is another open front. One message estimates the average employee contributes around 30% of income via income tax (IRPF), social security, and VAT, while high-net-worth individuals contribute significantly less proportionally. The counter-argument trinc quickly: the top 3% pay more in absolute terms than the middle-class 30%.
The discussion shifts to the classic dilemma: annoy the wealthy, and they leave. Someone concludes that the advantage of wealth is being welcome almost everywhere. The fiscal debate remains unresolved, as usual.
Growth that doesn't reach independence
The debate closes with an uncomfortable image: the world's best economy according to The Economist is also one where young people cannot move out because housing is a luxury good, and filling a supermarket cart costs ten days' salary.
How well does that headline hold up against a month-end paycheck?
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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 (126 replies).
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