Economist Jens Eisenschmidt, a specialist on the Spanish economy, says migration is the single largest driver, accounting for about a third of the growth. A study by the German Institute for Economic Research, IW Köln, goes further, finding that migrants accounted for nearly half of Spain's cumulative GDP growth in recent years and for 90% of the new jobs created between early 2024 and spring 2025. The study found these migrants came primarily from Latin America.

Tourism remains a major pillar, making up more than 12% of GDP. Low energy prices are also drawing in foreign investment: Germany Trade & Invest reports that Chinese automaker SAIC will spend 200 million euros on a new plant in Galicia, due to be completed by 2028 with capacity for up to 120,000 vehicles a year. EU funds have averaged 2% of Spain's GDP annually.

Those headline numbers sit alongside a weaker picture on productivity. BBVA Research reports that GDP per worker has risen by just 0.2% since the end of 2019. The European Commission points to market fragmentation as part of the explanation, noting that 95% of Spanish firms have fewer than ten employees. The Commission also flags bottlenecks in the power grid and in the housing market as risks to Spain's longer-term competitiveness.