The British weekly highlights that the PIGS are enjoying their “economic resurgence.”
The Spanish economy is in excellent shape. According to The Economist, Spain ranks first in a special index that ranks the economies of the OECD based on their performance over the past year. The prestigious British publication emphasizes the economic recovery of the so-called PIGS (Portugal, Italy, Ireland, Greece, and Spain) countries that suffered the most during the economic crisis but have made significant strides in recent years.
The study is based on a combined score that evaluates five macroeconomic and financial indicators: GDP, stock market performance, inflation, unemployment, and fiscal balances across 37 countries, most of them wealthy. It concludes that Mediterranean European countries, long “undervalued by their northern neighbors,” are now enjoying an “economic resurgence.”
Spain leads the rankings this year, a sign of the recovery of the PIGS, who occupy top spots. Following Spain are Ireland, Greece, Denmark, and Italy. The Economist highlights Spain’s “annual GDP growth, which is set to exceed 3%, driven by a robust labor market and high levels of immigration, which are mechanically boosting economic output.”
Spain’s GDP has grown by 3.5%, surpassed only by Israel (6.7%) and Greece (3.7%), and significantly outpacing the weakened economies of Germany and Italy, which are struggling with high energy prices and industrial slowdown. In other indicators, Spain ranks tenth in stock market growth (17.1%) and twelfth for controlled inflation (+2.4%). Unemployment, still high in southern Europe, has decreased by seven tenths of a point in Spain, a figure better than Italy (-1.4 points). It’s the lowest unemployment rate in over a decade for Greece, Italy, and Spain, although it remains at around 11%-12% nationally.
One downside is that Spain’s GDP per capita is not growing at the same pace as the overall economy. Additionally, deficits and debt levels remain concerning, though Spain’s primary deficit (excluding interest payments) is -0.6%, more controlled than other nations.
Spain’s economic performance outshines many other major OECD economies, with Canada ranking 12th, the United States 20th, Germany 23rd, Japan 25th, France 26th, and the UK 31st. The Economist describes the results of European powers like the UK and Germany as disappointing. Latvia and Estonia occupy the bottom positions, just as they did two years ago. According to the Minister of Economy, Business, and Trade, Carlos Cuerpo, this ranking “strengthens” Spain’s position on the global stage.
The Economist article titled Which Economy Did Best in 2024? analyzes global economic performance this year, highlighting the resilience of economies facing significant challenges such as high interest rates, conflicts in Europe and the Middle East, and crucial 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 solid, and stock markets have risen more than 20% for the second consecutive year.
