According to The Economist, Spain has emerged as the top-performing economy among the Organization for Economic Cooperation and Development (OECD) nations in 2024. The prestigious British publication highlights the country’s impressive recovery, particularly noting the resurgence of the PIIGS (Portugal, Italy, Ireland, Greece, and Spain) countries, which were hit hardest by the past economic crises but have made significant strides in recent years.
The rankings are based on a combined score that evaluates five key macroeconomic and financial indicators: GDP growth, stock market performance, inflation, unemployment, and fiscal balances. These indicators are used to compare the economic performance of 37 countries, most of them affluent, from the third quarter of this year to either the end of 2023 or the start of 2024. The results indicate a clear economic resurgence among Mediterranean European countries, which have long been underestimated by their northern neighbors.
Spain leads the charge this year, signaling a remarkable recovery among the PIGS countries, which now occupy the top positions. Trailing closely behind are Ireland, Greece, Denmark, and Italy. The Economist credits Spain’s economic performance to strong annual GDP growth, which is on track to exceed 3%, bolstered by a resilient labor market and high immigration levels that further stimulate economic output.
Spain’s GDP is growing at an impressive 3.5%, ranking just behind Israel (6.7%) and Greece (3.7%). This growth stands in contrast to struggling economies like Germany and Italy, which are grappling with high energy prices and industrial slowdowns. Spain also ranks tenth in stock market growth, with a 17.1% increase, and boasts a modest inflation rate of 2.4%, placing it in twelfth place. The country’s unemployment rate has dropped by 0.7 percentage points, a figure surpassed only by Italy, which saw a 1.4-point reduction. Despite the improvement, the unemployment rate in Spain still hovers around 11-12%, reflecting ongoing challenges in Southern Europe.
However, Spain’s economic recovery isn’t without its challenges. While overall GDP growth is strong, GDP per capita growth has not kept pace, and Spain continues to face high levels of deficits and debt. Still, Spain’s primary deficit (excluding interest payments) stands at a more controlled -0.6%, compared to other nations.
In comparison with other major OECD economies, Spain’s performance stands out. Canada ranks 12th, the United States 20th, Germany 23rd, Japan 25th, France 26th, and the United Kingdom 31st. The Economist criticized the disappointing performance of European powers such as the United Kingdom and Germany. Latvia and Estonia continue to occupy the lowest positions, as they did two years ago.
Carlos Cuerpo, Spain’s Minister of Economy, Business, and Trade, emphasized that this ranking reinforces Spain’s position in the global economic landscape.
The Economist’s article, “Which economy did best in 2024?”, also provides a broader look at global economic performance, noting that economies around the world have shown resilience in the face of challenges such as high interest rates, geopolitical conflicts in Europe and the Middle East, and key elections in countries like the United States and India. According to the International Monetary Fund (IMF), global GDP is expected to grow by 3.2% this year. Additionally, inflation has decreased, employment growth remains strong, and stock markets have risen by over 20% for the second consecutive year.
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