Walter Finch
SPAIN has overtaken both South Korea and Japan in GDP per capita, according to the latest figures from the International Monetary Fund (IMF).
Spain’s GDP per head now sits at approximately $36,200 (€33,666), while South Korea trails on $34,600 (€32,178) and Japan on $34,000 (€31,620).
This milestone marks a remarkable turnaround after a decade in which Spain has embraced a service-led growth model, bolstered by booming tourism, rising employment and steady immigration.
The turning point has not been some sudden technological leap or industrial boom, but rather a global change in how people live and spend.
Economists say the world is shifting away from a model of consumption based on goods and manufacturing toward one centred on services and experiences – precisely the areas in which Spain excels.
Tourism has surged to historic highs, hotel occupancy remains strong, and the hospitality sector continues to absorb large numbers of workers.
Across the country, from coastal resorts to urban rooftops, international visitors are increasingly choosing to spend their money on restaurants, leisure and lifestyle rather than gadgets and goods.
The IMF reports that the services sector now accounts for roughly 70% of Spain’s economy.
By comparison, the Asian tigers of South Korea and Japan – long icons of industrial and technological might – have struggled with ageing populations, sluggish growth and in Japan’s case, ballooning public debt.
Yet the so-called sorpasso (overtaking) is also a story of demographic change.
Spain’s population is rising, nearing 50 million, fuelled by immigration. Many of these newcomers are entering the workforce, increasing both aggregate output and per capita GDP.
READ MORE: Outrage in Spain over French plans to sign a deal with the UK to ‘take back migrants’
Analysts caution that this doesn’t necessarily mean people are getting richer, but it does mean the economy is producing more and spreading that production across a larger and more active population.
Spain’s output has expanded by around 3% in the past year alone, placing it firmly at the crest of all advanced?economy growth globally.
Analysts point to a profound shift in the global economy, where demand for experiences such as travel, hospitality and leisure is reconfiguring prosperity worldwide.
While the IMF predicts Spain’s GDP per capita will exceed €39,000 by 2030, Japan is expected to remain near €38,000, while South Korea continues to struggle for traction.
That Spain, which was once financially bruised by the 2008 crisis, has leapfrogged two former growth titans illustrates how influential the rise of services has become.
Click here to read more Spain News from The Olive Press.
