The Organisation for Economic Co-operation and Development (OECD) has issued a stark warning that the consequences of climate change are now seriously endangering the growth of Spain's economy, one of the most dynamic among developed nations.
Extreme Weather Takes Its Toll
In a report released recently, the Paris-based organization highlighted how Spain has faced increasingly severe weather patterns. The country has endured longer and more intense summer heatwaves, while fiercer autumn storms have brought torrential rains. Scientists confirm these extreme events are linked to human-driven climate change.
The OECD explicitly stated that rising temperatures, frequent and intense droughts, floods, heatwaves, and wildfires increasingly threaten the country's future growth, environment, and public health.
The Human and Economic Cost
The report pointed to a specific tragedy as evidence: the October 2024 floods that killed more than 200 people. This disaster caused severe damage in the eastern region of Valencia, a crucial industrial and agricultural hub for the Spanish economy.
According to the OECD, these climate-related disasters carry increasing economic costs. To build resilience, the organization recommends targeted adaptation investments and robust infrastructure. A key suggestion is restricting new development in high-risk flood zones and expanding flood protection infrastructure to prevent future damage.
A Strong Economy Facing New Challenges
Despite these environmental threats, Spain's economic performance has been impressive. The economy grew by 3.5% in 2024 and is predicted to expand by 2.9% this year—more than double the forecast for the entire eurozone.
The OECD credited migration for contributing to this strong performance but also flagged significant challenges. These include an ageing population and an unemployment rate of 10.45%, which remains the highest in the European Union.
To secure long-term prosperity, the OECD insists on structural reforms to boost GDP per inhabitant and strengthen budget stability. The organization also emphasized leveraging digital tools and the spread of artificial intelligence to future-proof the economy against both demographic and environmental pressures.
