The UK and Spain are apparently enjoying the closest relationship in decades after last year’s reset deal to boost economic and political ties - especially as the two governments are on the same “Socialist” side. So why are the two economies like chalk and cheese?
This week, Rachel Reeves was branded ‘delusional’ as she claimed Britain was turning a corner even as the International Monetary Fund (IMF) predicted the economy will remain in the slow lane. The IMF’s latest forecasts left the outlook for the UK unchanged with growth of just 1.3 per cent this year and 1.5 per cent in 2027. Britain and Italy were the only members of the G7 group of advanced economies not to be given a growth upgrade for 2026.
In the meantime, Spain is set to lead economic growth in Europe by 2026, with GDP forecast to rise by 2.1% year on year – 0.9 percentage points above the continental average of 1.2%. This performance will be driven by rising immigration and the strong momentum of the services sector, according to Mastercard Economics’ Economic Outlook 2026 report.
So, considering both governments come from the same political leaning and are holding regular meetings, why does the UK not look at how Spain has managed to pull off an economic wonder to avoid any further economic pain?