The Spanish momentum: How large investors are shaping economic growth

Spain’s economy appears to be booming. While the EU as a whole struggles to keep pace with the US economic surge, Spain has consistently hit GDP growth records in recent years, distinguishing itself among OECD nations and earning recognition as The Economist’s best-performing economy of 2024. 

This strong performance is attracting significant attention from international investors. Their crucial role in Spain's economic development, as well as the challenges they face, was one of the main topics of discussion at the 2025 Spain Investors Day held in Madrid with Esade as academic sponsor.

The event featured a panel moderated by Esade’s General Director, Daniel Traça, who emphasized the need for more spaces of discussion between investors, businesses and governments. “When all these actors come together, it translates into the fabric of the economy”, he said. In his view, major investors are decisive in driving the development of the Spanish economy, “especially in strategic areas such as telecommunications and infrastructure.” 

However, it’s not just economic momentum driving interest in Spain. Jonathan Muir, CEO of the investment firm Letterone, introduced the discussion by emphasizing the “three Ps” that fuel investment in the country: partnerships, people, and purpose. According to Muir, the constructive dialogue between regulators and businesses, alongside Spain’s accessible pool of entrepreneurial talent and top-tier higher education institutions like Esade, position the nation as a beacon for foreign investment. 

Appealing to investors

Foreign investment now represents 41 per cent of Spain’s GDP, marking a 33 per cent increase since 2018. Manuel de la Rocha, Director of the Office of Economic Affairs and G20 of the Spanish Government, attributes this success to the country’s robust legal framework, its high-quality digital and physical infrastructure, and its exceptional quality of life. “Spain knows where it is heading, which provides predictability and security to investors,” he remarked. 

Geography, talent, transport and connectivity, and culture are some of Spain's strengths

James Seppala, Senior Managing Director and Head of Blackstone Real Estate Europe, highlighted two key sectors where Spain has the potential to lead: digital infrastructure, particularly in the development of data centers, and hospitality—a long-standing pillar of Spain’s economy that reached new records last year. "Spain has unique attributes that no one else can match, and we’ll continue to benefit from them," he said. 

Seppala also stressed the importance of investing in structural, rather than cyclical, changes. Adding to this perspective, Luís Megías, CEO of Blackrock Spain, emphasized the role of capital markets not only in driving economic growth but also in building resilience. "When there is a strong capital market, it provides alternatives when other systems collapse," he noted, referencing Spain’s experience during the 2008–2012 banking crisis, which marked a turning-point in the nation’s economy. 

Partnerships and deregulation

All panelists agreed on the critical importance of fostering partnerships between public and private actors. Lord Davies of Abersoch, Chairman of Letterone and former UK Minister of State for Trade, Investment and Small Business, underscored this point: “You can’t attract foreign direct investment without partnering with businesses. Spain seems to have a willingness and openness toward partnerships, which is crucial in today’s world of intense competition.” 

The most important step is to establish a unified European capital market

Bjorn Sibbern, CEO of financial services firm SIX, emphasized the need for stronger collaboration between regulators and companies. He also called for a European-wide push to deregulate and simplify existing processes to avoid falling behind the US in competitiveness. “Multinational companies can choose where to list. European countries need to improve their regulatory frameworks and tax systems to remain attractive,” he stated. 

According to the Draghi report, €300 billion in European savings flows to the US annually. On top of that, the EU requires €800 billion to meet its needs in defense, investment, and research. Building on these figures, Manuel de la Rocha added a new dimension to the conversation: “We can agree on simplifying regulations, but the most important step is to establish a unified capital market.” In his view, a capital market union is essential to channel European savings into investments within the EU and close the gap with the dominant US capital markets. 

A change in times

As Daniel Traça pointed out, we are living through “a technological revolution in the middle of a geopolitical revolution.” In this context, the Draghi report highlights a key figure for understanding the EU’s lag in competitiveness: 70 per cent of the gap in GDP per capita between the US and the EU is attributed to differences in productivity growth. “That’s because of the technology sector. We need breakthroughs in tech,” emphasized Manuel de la Rocha. 

“AI and other technological advancements are going to make the world a very different place,” noted Lord Davies of Abersoch, who urged Spain to support its entrepreneurs in creating new businesses. “The capital is there to support them.” Recent data shows that Spain’s startup ecosystem raised €3.3 billion last year, reflecting a 36 per cent annual increase. 

Despite Spain’s efforts to provide a clear roadmap and predictability for foreign investors, there is no denying that the short term will be shaped by heightened volatility. However, Luís Megías stressed that the country’s key strengths will remain unchanged: “geography, lots of skills and talent, transport and connectivity infrastructure, and Spanish culture, which acts as a magnet for investors.”