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What's fueling economic growth in Spain?

03:41

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Markus Böhnisch Spain
November 9, 2025

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.

Spain’s post-pandemic recovery is accelerating, driven by a surge in construction, tourism, and hospitality. From Madrid’s building sites to Marbella’s beachfront hotels, foreign workers are filling critical labor gaps as locals shift toward higher-paid, less demanding roles. With over 600,000 migrants arriving in two years and 20 million more tourists visiting, the country’s economic growth outpaces much of the EU.

Yet questions remain about long-term sustainability, productivity, and the future of low-skilled employment. As automation gains traction and regions like Andalusia attract global talent, Spain's labor market is undergoing a profound transformation.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.

Markus Böhnisch Reporter focusing on the Iberian Peninsula and topics related to sustainability
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