Spanish economic and political stability under Pedro Sánchez

The administration of Prime Minister Pedro Sánchez has faced shifting assessments regarding Spain’s economic and political landscape. Initially, reports highlighted significant economic growth, characterized by rising wages, increased employment, and declining unemployment rates. During this period, the government was noted for using EU recovery funds to support stability and for maintaining specific migration policies focused on temporary residency for legal Latin American residents.

However, subsequent analysis has introduced more scrutiny. While real GDP per capita grew by 6% during Sánchez’s tenure, this rate has trailed the European Union average of 9.9%. This has resulted in Spain’s GDP per capita ranking within the EU dropping from 13th in 2018 to 15th in 2025.

Parallel to these economic concerns, the country has experienced increased political polarization and social tension. Critics have raised concerns regarding the erosion of democratic norms and the effectiveness of Parliament, as the political landscape becomes more divided heading toward the end of the current mandate.