Spain overtakes Japan in GDP per capita in a historic sorpasso that uncovers a much bigger shift in the global economy
https://www.eleconomista.es/economia/noticias/13443833/07/25/espana-adelanta-a-japon-en-pib-en-capita-en-un-historico-sorpasso-que-destapa-un-cambio-mucho-mayor-en-la-economia-global.html
by Competitive_Waltz704
30 comments
>The country of bars and beach bars has overtaken the economy of technology and robots. This, which might seem a real fantasy, is a true reality if you look at the GDP per capita data published by the International Monetary Fund (IMF) in each revision of its forecasts. Beyond the humorous and anecdotal nature of the comparison, the truth is that it **uncovers or reveals a much larger change in the global economy**.
>The growing preference of consumers in much of the world for services is generating this type of situation in which economies that are highly intensive in capital, technology and investment (Japan, South Korea and Germany) seem to be languishing, compared to countries where services (which were once branded as a major drag on the economy) account for a larger share of GDP. Thus, what seemed impossible in 2012 has become possible in 2024.
Reminder : Slovenia is still lower and has stuck in a middle income trap along with most of the eastern EU branch. I say this because people here were circlejerking on a 2 million country having a higher income than Spain the last ten years or something. Also, Cyprus surpassed the EU average this year and the uk in ppp holding and expanding the distance with the eastern branch.
Aww. Congrats !!!!
And they are led by a Socialist?! How is this possible?!!?
/s
This is more Japan’s downfall than Spain’s success.
Sure. Almost all tech companies in Germany hiring in Spain and Portugal. Reason? Money. They costs almost half as much as a german, highly skilled worker or even folks from India.
Spain has more high speed rail than most other countries in Europe. They are the most efficient for cost and speed in building high speed rail in the developed world. They’ve built a ridiculous amount of new motorway / highway in the previous decades. Far more than the UK for reference.
Their urban redesign projects have won international awards (Madrid Rio, Barcelona Olympic village). AFAIK San Sebastian and Valenceia are undergoing major projects for urban development that are considered quite innovative.
They are making big moves in the renewables sector and they’ve totally embraced mass migration from South America which has allowed their labour market to constantly get filled with cheap labour.
Whatever people’s criticisms of immigration it’s great for the economy. It doesn’t do too much harm that they are taking from countries that are very culturally similar and the integration cost is super low. Most of South America’s educational standard’s are basically the same as Europe/ US. But they dont get recognized / accredited for whatever reason.
Along with this they’ve a huge amount of tourism. Its pretty much always going to be one of the best in Europe to go to with their high quality infrastructure and wealth of beaches.
Glad to see Spain is going up
A left wing party in power makes your economy better. Who would have thought. /s
This wouldn’t have anything to do with the weak yen would it?
It’s true that the “big numbers” are going well for Spain.
But for most people, things are getting worse and worse.
The housing is completely out of hand. Most people bellow 32-35 need to live with their parents or live in a tiny room in a shared flat because of the prices.
The grocery prices have gone up a lot in recent years.
Healthcare service was once very good a few years ago, but now you have huge waiting times and there’s very few doctors and personnel.
And of course, salaries are terrible, even when the rest of the costs have gone up a lot.
I see very little hope in the future.
Japan has thrown decades of potential economic growth away. Just tragic man how they messed up with immense consequences for their own population
Well, it’s not surprising given Yen’s decline.
Japanese GDP per capita PPP is bigger. Meaning Japs can afford more goods and services despite making similar amount of cash. Also Yen has lost like 30% of its value since covid hence making them look weak despite economy being slightly bigger than then
Yet, I’m a scientist working in a prominent university in Barcelona, and my salary is total garbage. (About 35k per year, work a Ramon y Cajal Grant).
And I just received an offer from the University of Tokyo for a 5 years position at 12 millions yens.
So really, those indicators don’t mean much for everyday people.
Japan has “low” gdp per capita for high tech super star. Slovenia is literally in the same ballpark (not PPP but nominal) https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=SI-JP-ES , I always wondered what the reason is. This is gross oversimplification but out of the brands I trust most are Japanese and our only rock star brand is Elan (I know, difersified smb economy, but still…).
Oh man I can’t wait for when that sweet GDP money comes to the working people and we can afford a home! /s
…and yet, young people in Spain can’t make a living. I wonder where that money is? Hmmm /s
The problem with Japan is that it’s a society with too many old people. In recent years, t[hey had to take in a accept large number of migrant workers to fill in jobs in hotels or the famous konbinis](https://asia.nikkei.com/Spotlight/Japan-immigration/Japan-logs-largest-ever-jump-in-foreign-workers).
[Spain’s fertility rate is actually lower than Japan](https://data.worldbank.org/indicator/SP.DYN.TFRT.IN?most_recent_value_desc=true) (1.1 vs 1.2), but its age dependency ratio (% of working-age population) is 51%, meaning that it still maintains a relatively healthy working-age population that isn’t yet overwhelmed by dependents. This helps sustain economic activity in Spain. Japan is the opposite: with an age dependency ratio of 70%, there are way too many old people who have to be supported by the dwindling work force.
In comparison, China’s fertility rate is also very low, but their economy will still grow for a long period, as their age dependency ratio is 45% and thus demographic pressures are not yet a major drag on growth. But both Spain and China, and many countries around the world, will eventually have a similar age dependency ratio like Japan, and that won’t be pretty for economic growth unless you take in many migrants from surplus countries in Africa and Asia.
Not surprising, Spain has been growing well for the last few years. Cheers to my second favorite European country~
Japans decline continues, and it seems their government isn’t really doing anything about it.
Pedro, no me da para comprar un piso.
We are truly happy to see our wealthy class become even richer. Good for them. With a bit of luck, we might catch a bill that falls out of their pockets.
Congratulations!
The best way to overtake others is by having them sit perfectly still!
Japan actually is *starting* to turn it around but it’s such a slow process. Can’t see them ever being top few in the world economy because their population is aging THAT hard.
As we all know, there is nothing more important in life than GDP
It’s from all the Airbnbs! 😉 3, 2, 1…
One thing a lot of surveys miss is a big rise in the minimum wage. In excess of 50pc under this government. It’s still too low, but this money gets spent in the economy rather than giving tax cuts which benefit the richest the most. That money gets hoarded or buys assets (this also happens in Spain).
With a left government that is. And that’s great.
I don’t see the improvement, but I am glad the excel is looking good.
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