Economic Performance and Alignment with Sustainable Development Goals

Economic Growth in the European Context

Spain’s economy is demonstrating significant growth, positioning it as a leader within the Eurozone and contributing to the objectives of SDG 8 (Decent Work and Economic Growth). The nation’s Gross Domestic Product (GDP) is forecasted to rise by 2.5% this year, a stark contrast to the projected expansions of its European counterparts.

• Spain: 2.5% projected GDP growth
• France: 0.6% projected GDP growth
• Germany: 0% projected GDP growth
• Italy: 0.7% projected GDP growth

This robust performance is driven by high consumption, investment, and the modernization of the Spanish economy, particularly in the expansion of non-tourism service exports such as IT and financial services.

Challenges to Sustainable Growth

Despite positive economic indicators, Spain faces several challenges that impact its long-term sustainable development. These hurdles require strategic policy interventions to ensure progress towards multiple SDGs.

1. Youth Unemployment: The country has the highest youth unemployment rate in the EU, a significant barrier to achieving the targets of SDG 8 (Decent Work and Economic Growth).
2. Cost of Living: Ensuring wages keep pace with the rising cost of living is crucial for promoting SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities).
3. Public Finance: The need to decrease the government deficit and public debt while maintaining investment in sustainable development.
4. Climate Change: Addressing environmental challenges is fundamental to SDG 13 (Climate Action).

Key Sectors Driving Sustainable Development

Sustainable Tourism and Local Communities (SDG 8 & SDG 11)

The tourism sector remains a vital component of the national economy, representing approximately 12% of GDP and employing nearly 3 million people. This directly supports SDG 8 (Decent Work and Economic Growth). However, the influx of tourists has raised concerns regarding SDG 11 (Sustainable Cities and Communities), with local backlash highlighting the tension between economic benefits and the social and environmental sustainability of urban centers.

Immigration and Labor Force Contribution (SDG 8 & SDG 10)

Immigration is a critical factor in Spain’s economic expansion and its pursuit of SDG 8 and SDG 10 (Reduced Inequalities). Migrants have accounted for 90% of the increase in the labor force since 2021. This influx supports the service sector, helps contain labor costs, and contributes to economic competitiveness. Spain’s policy of welcoming migrants through work visa schemes contrasts with trends in other European nations and supports a more inclusive labor market.

Investment in Clean Energy and Sustainable Infrastructure (SDG 7 & SDG 9)

Spain’s strategic investments in renewable energy align directly with SDG 7 (Affordable and Clean Energy) and SDG 9 (Industry, Innovation, and Infrastructure). This long-term focus has resulted in significant benefits:

• A 40% drop in wholesale electricity prices due to the increased share of renewables in the energy mix.
• Enhanced attractiveness for foreign direct investment (FDI) in green technology sectors.

The country ranks as the fourth most attractive in the EU for investors, with significant FDI directed towards sustainable projects. This is further bolstered by the European Union’s Next Generation EU funds, of which Spain is the second-largest beneficiary, channeling capital towards renewables and sustainable mobility.

Partnerships for Green Technology (SDG 17)

International partnerships are accelerating Spain’s transition to a green economy, reflecting the principles of SDG 17 (Partnerships for the Goals). Notable collaborations include:

• Arctech: The China-founded photovoltaics company established its European headquarters in Madrid, leveraging Spain’s robust solar ecosystem.
• Stellantis and CATL: A joint venture to build a $4.3 billion electric vehicle battery plant in Zaragoza.

These investments from partners, including the U.S. and China, are pivotal for developing sustainable industries and infrastructure within Spain.

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Spain’s economy touches upon several Sustainable Development Goals (SDGs) by discussing economic growth, employment, energy, industry, and migration. The following SDGs are relevant:

• SDG 7: Affordable and Clean Energy

  The article highlights Spain’s successful investment in green energy, which has led to lower energy costs. It specifically mentions the increase in the renewable energy share in the electricity mix and investments in solar photovoltaics (PV), directly aligning with the goal of ensuring access to affordable, reliable, sustainable, and modern energy.

• SDG 8: Decent Work and Economic Growth

  This is the most prominent SDG in the article. The text is centered on Spain’s economic boom, with discussions on GDP growth, job creation in the tourism sector, the challenge of high youth unemployment, and the role of foreign investment and exports in driving the economy. It addresses both the successes and challenges related to achieving sustained, inclusive, and sustainable economic growth and productive employment.

• SDG 9: Industry, Innovation, and Infrastructure

  The article discusses the modernization of the Spanish economy, moving beyond tourism to export services like IT and finance. It also details significant foreign investment in sustainable industries, such as the construction of a large EV battery plant and the establishment of a headquarters for a photovoltaics company. This relates to building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation.

• SDG 10: Reduced Inequalities

  The role of immigration is a key theme. The article notes that Spain is welcoming a large number of migrants through work visa schemes to support its labor force and economic expansion. This directly connects to the goal of facilitating orderly, safe, and responsible migration and mobility of people.

• SDG 11: Sustainable Cities and Communities

  While the focus is on economic benefits, the article also mentions the negative social impacts of mass tourism, such as the “backlash from local communities” and protests in Barcelona. This touches upon the challenge of making tourism sustainable and managing its effects on cities and communities.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article, the following specific SDG targets can be identified:

• SDG 7: Affordable and Clean Energy

  • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article directly supports this by stating, “The increase in the renewable share in the electricity mix over the past five, six years has implied a drop of 40% in wholesale electricity prices.”
  • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The article provides examples of this with a Chinese photovoltaics company opening its European headquarters in Madrid and Stellantis teaming up with CATL to build a battery plant, fueled by foreign investment.

• SDG 8: Decent Work and Economic Growth

  • Target 8.1: Sustain per capita economic growth in accordance with national circumstances. The article focuses on Spain’s strong economic performance, forecasting its annual gross domestic product to “rise 2.5% this year,” outpacing other major European economies.
  • Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation. This is reflected in the finance minister’s statement that Spain is exporting more in non-tourism services (IT, financial services) than in tourism, indicating a “modernization of the Spanish economy.”
  • Target 8.5: By 2030, achieve full and productive employment and decent work for all. The article discusses both positive and negative aspects of this target. It mentions job creation, with the tourism workforce growing to “nearly 3 million people,” but also highlights a major challenge: Spain has the “highest youth employment rate in the EU.”
  • Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs. The article confirms the job-creating aspect, noting tourism represents 12% of GDP and employs millions. However, it also implies a need for better policies by mentioning the “backlash from local communities” against over-tourism.

• SDG 9: Industry, Innovation, and Infrastructure

  • Target 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with… greater adoption of clean and environmentally sound technologies. The article’s focus on foreign investment in renewables, such as the “$4.3 billion lithium iron phosphate battery plant” and the growth of the solar PV ecosystem, directly relates to this target.

• SDG 10: Reduced Inequalities

  • Target 10.7: Facilitate orderly, safe, regular and responsible migration and mobility of people, including through the implementation of planned and well-managed migration policies. The article describes Spain’s policy to “welcome nearly a million migrants over the next three years, through work visa schemes and the granting of residence permits to undocumented workers.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article mentions several quantitative and qualitative indicators that can be used to measure progress:

• Indicators for SDG 7

  • Indicator for Target 7.2: Renewable energy share in the total final energy consumption. The article implies progress by mentioning the “increase in the renewable share in the electricity mix” and its effect of a “drop of 40% in wholesale electricity prices.”

• Indicators for SDG 8

  • Indicator for Target 8.1: Annual growth rate of real GDP. The article explicitly states this, forecasting a “rise [of] 2.5% this year.”
  • Indicator for Target 8.5: Unemployment rate, by sex and age. The article directly references this by stating Spain has the “highest youth employment rate in the EU.”
  • Indicator for Target 8.9: Tourism direct GDP as a proportion of total GDP. The article provides a clear figure, stating that “tourism in Spain represents around 12% of the country’s GDP.” It also mentions the number of people employed in the sector (“nearly 3 million people as of 2024”).

• Indicators for SDG 9

  • Indicator for Target 9.4 (and 7.a): Foreign direct investment (FDI). The article quantifies this by noting Spain is the “fourth most attractive country in the EU for investors” and that China will be “investing up to 11 billion euros in Spain in 2025.”

• Indicators for SDG 10

  • Indicator for Target 10.7: Number of countries with migration policies that facilitate orderly, safe, regular and responsible migration. The article describes Spain’s policy to “welcome nearly a million migrants over the next three years,” which serves as a qualitative and quantitative indicator of its planned migration policy.

4. SDGs, Targets and Indicators

Source: cnbc.com