What's fueling accelerating economic growth in Spain?

DW (English)

After years of sluggish growth, Spain is thriving again. GDP surged by 3.5% last year, powered by record tourism and immigration, some experts have said.

Transcript

00:00A boom in construction, on the beaches and in the cities.

00:04Spain's economy is humming, but it all depends on foreign workers.

00:09They are, in fact, the solution to our labour shortage.

00:14Without support from abroad, we wouldn't have been able to welcome so many tourists.

00:22Whether in Marbella or Madrid, Spain's construction industry is back in full swing.

00:28But the days when locals rush to building sites for quick cash are over.

00:32Today, new projects rely on migrant workers like Hamid Marais from Morocco.

00:37For job seekers, it's a golden opportunity.

00:40Hamid and Alejandra from Colombia are part of a growing community.

00:4490% of all new jobs created in the past two years have been filled by immigrants.

00:54These jobs have emerged mainly in the fastest growing sectors, tourism, hotels and restaurants.

01:01It's no surprise. In just two years, Spain welcomed 20 million more visitors.

01:06At the same time, around 600,000 migrants arrived seeking work.

01:11And they're finding it, in roles many Spaniards no longer want.

01:16Locals are aiming for better paid, less physically demanding jobs, with fewer working hours.

01:25And that leaves these types of positions to immigrants.

01:28Salvador Gallardo's restaurant on the Mediterranean coast is one example.

01:37Just one of the kitchen staff is Spanish. The rest are from North Africa or South America.

01:42Together, they're helping Spain's economy grow faster than other EU nations.

01:47But what sounds like a success story doesn't benefit everyone.

01:54The country's overall wealth is growing because the population has grown.

02:00It's as if we suddenly became a much larger country.

02:04But per capita income, which is what actually matters to most people, is still lagging.

02:14One reason is that Spain has long struggled with low productivity.

02:18Simply adding more workers isn't enough.

02:21Especially in construction, companies are now looking for greater efficiency,

02:25also driven by ongoing labor shortages.

02:28The plan is to use automation to build more quickly and make the sector more attractive.

02:34We're also trying to reach out to groups that don't usually see themselves in our industry,

02:41such as young people and women.

02:46So far, most immigrants are still working in lower-skilled jobs.

02:50But Spain is becoming increasingly appealing to businesses and skilled professionals.

02:56Even Andalusia, long known mainly as a holiday destination, is changing.

03:02Take Malaga's Technology Park.

03:04Since the end of the pandemic, more and more international talent has been moving here,

03:08including senior managers with international experience.

03:11We employ people from over 28 countries.

03:16We chose Malaga because of its quality of life.

03:19The climate, food, people and ecosystem draw international talent.

03:23In the longer run though, Spain's success could become a challenge.

03:29If the economy slows, low-skilled workers would be the first to lose their jobs.

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