Spain economy shows strong GDP growth and rising wages

Spain is experiencing significant economic growth, with its GDP increasing by 2.8% in 2025 and showing continued strength in 2026. This performance outpaces the Eurozone average and major economies like Germany, France, and Italy. A key driver of this expansion has been immigration; between 2022 and 2025, the foreign-born population rose from approximately 7.5 million to 9.5 million. Research from BBVA suggests immigration may have generated nearly 40% of the increase in per capita GDP, while other estimates attribute three-quarters of the total real GDP increase since 2018 to immigrant populations.

On the labor front, Spain has seen its unemployment rate drop below 10% for the first time since 2008. The country has also implemented consistent increases to its minimum wage, which rose from 735 euros in 2018 to 1,221 euros in 2026. According to the Instituto Nacional de Estadística, the average gross monthly salary in Spain reached 2,385.6 euros in late 2025. However, the median salary stands at 2,001.4 euros, indicating that half of the workforce earns less than 2,000 euros per month.

Despite these positive indicators, some analysts warn of underlying vulnerabilities. Concerns have been raised regarding whether this growth is sustainable, citing insufficient productivity levels and potential long-term pressures on the social security system.