Spanish Economy Tipped to Continue to Grow in 2024

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Spain’s National Statistics Institute, the INE, is a veritable goldmine of fascinating facts and figures. March 2024 data shares good news about the Spanish economy. The country’s 2024 fourth-quarter economic output was 2.0% up on 2023’s fourth quarter, while INE recorded 1.9% annual growth in 2024’s third quarter.

The Spanish Economy, Starting the New Year with Cheer

A positive January INE GDP report moved analysts at European bank ING to declare: “We’d previously seen signs that growth was picking up as several soft indicators (such as business sentiment) improved toward the end of 2023 – but this growth far exceeds expectations. GDP came in much higher than market expectations of 0.2% QoQ.”

“After significant growth in the third quarter, which returned household consumption to pre-pandemic levels, it continues to fuel economic growth in the fourth quarter. With inflation lower than wage growth, real purchasing power is increasing again, boosting consumption.”

Spanish Service Sector Surge

In related news, Spain’s service industry thrived in February, advancing at a quicker rate than at any time since May 2023. This is according to the HCOB Spain Services Purchasing Manager’s Index. S&P Global compiles this report and the latest figures have an increase from 52.1 to 54.7.

Anything over 50 is a sign of growth rather than contraction. The index has remained over 50 every month since November 2022 with the exception of August 2023.

Jonas Feldhusen, a Hamburg Commercial Bank economist, remarks: “Spain’s service providers are optimistic for the future. Respondents expressed optimistic forecasts for demand, accompanied by expectations of reduced inflation and the realization of new projects in 2024.”

The Organisation for Economic Cooperation and Development (OECD) Verdict

The OECD predict a 1.5% growth of the Spanish economy in 2024 and an extra 2% increase in 2025. This is an upgrade on a previous forecast. Spain’s the only country in the eurozone forecast revised by the OECD.

This compares favourably to the eurozone in general. The estimate for the whole of the eurozone is 0.6% in 2024 and 1.3% in 2025. Germany, traditionally Europe’s economic powerhouse, is set to grow by a mere 0.3 percent in 2024, while France fare little better, tipped to grow by 0.6%

RIF Trust’s Take on the Spanish Economy

Our Group Chief Operating Officer is David Regueiro Santalla. He was born and bred in Spain. Regueiro links his home country’s strong economic performance with a developing interest in the Spanish Golden Visa.

“Residency by Investment is more appealing in the more stable countries,” he asserts. “Although Spain has a minority government, they are running a second mandate and the economy seems to exist in a bubble..”

“The Spanish economy remains relatively unaffected by external factors,” Regueiro concludes. “And experts predict sustained growth which is always reassuring for investors.”

Taking Your First Steps to Acquiring a Spanish Golden Visa

If our good news story about the Spanish economy has whetted your appetite for Residency by Investment in the country, here’s what you should do. You should consult an investment migration specialist like RIF Trust. So, don’t delay and contact us today.