Goldman Sachs Declares Spain the Fastest-Growing Economy in Europe
Goldman Sachs recognizes Spain as Europe's fastest-growing economy, with revised forecasts and a shift in economic focus.
Key Points
- • Spain is identified as the fastest-growing economy in Europe by Goldman Sachs.
- • Revised growth forecasts predict 1.9% growth in 2026 and 1.7% in 2027.
- • The services sector is vital, shifting from tourism to higher value-added services.
- • Spain benefits from increased skilled immigration and lower political risk to growth.
Goldman Sachs has recognized Spain as the fastest-growing economy in Europe, showcasing its strong recovery and positive growth prospects. This latest report highlights Spain's impressive economic transformation, particularly emphasizing the critical role of the services sector. As the country shifts from being heavily reliant on tourism to a more diverse economy fueled by higher value-added services such as finance, real estate, information technology, and professional services, Spain is carving out a leading position in the eurozone.
In particular, Goldman Sachs has revised its growth forecasts for Spain, now projecting economic growth rates of 1.9% in 2026 and 1.7% in 2027, an increase from the previous estimates of 1.5% and 1.6%, respectively. This optimistic revision is credited to the resilience of the services sector, which has effectively evolved beyond traditional tourism dependence.
Moreover, Spain's economic health is bolstered by a substantial influx of skilled immigrants, with the country currently welcoming more skilled workers than Germany, France, and Italy. Despite facing political instability—where a stable parliamentary majority remains elusive—the nation's economic indicators continue to show strength. Analysts note that this political context has not impeded economic growth, with Spain appearing less susceptible to tariff risks and international trade tensions.
Additionally, the report predicts an uptick in defense spending in the coming years, alongside expectations of a fiscal deficit around 2.6% of GDP for both 2026 and 2027, which may serve as an additional fiscal stimulus for the economy. These factors collectively contribute to a robust and evolving economic landscape for Spain as it heads into the next few years.