The Spanish economy continues to show growth, with GDP increasing by 0.7% at the beginning of the year, which is more than double the European average. Nearly 70% of this growth is attributed to the foreign sector, due to increased service exports and decreased imports. The remaining 30% comes from domestic demand, with investment rebounding and public consumption slowing down. Family consumption has also benefited from higher labor income.
Despite these positive signs, there are concerns about whether the Spanish economy can sustain this balanced growth in the long term. While Spain has improved its international competitiveness through factors like access to affordable energy and immigration, external challenges like the energy crisis and geopolitical tensions could impact the economy.
There are temporary factors affecting demand, such as the shift towards services over goods due to the pandemic. The services sector in Spain has seen growth, while the goods sector, including industry and construction, has declined. However, these trends are expected to normalize as consumer preferences stabilize.
Looking ahead, it is crucial for Spain to focus on strengthening its competitive advantages through investment, particularly in the face of rapid technological changes. While investment has shown some growth, it is still below pre-pandemic levels and needs to increase to boost productivity and support sustainable economic growth. The key to achieving a sustainable economic cycle will depend on promoting structural advances and enhancing the production model in line with European standards.