Climate change is posing an ever-greater danger to the momentum of Spain’s high-performing economy, the Organisation for Economic Co-operation and Development (OECD) said on Wednesday, citing last year’s catastrophic floods as a stark warning sign.
In recent years, Spain has faced prolonged, more severe summer heatwaves and increasingly violent autumn storms that have unleashed destructive downpours — extremes that scientists link to human-driven climate change. ALSO READ: Study finds climate change made Spain’s wildfires 40 times more likely.
‘Rising temperatures, frequent and intense droughts, floods, heatwaves, and wildfires increasingly threaten the country’s future growth, environment, and public health,’ the OECD noted in its latest assessment.
The Paris-based institution stressed that ‘climate-related disasters have increasing economic costs’ and warned that ‘enhancing resilience will require targeted adaptation investments and robust infrastructure’.
The October 2024 floods, which left over 200 people dead and caused extensive destruction across the Valencia region – a key hub for Spanish industry and agriculture – were highlighted as a particularly devastating example. ALSO READ: Families of Spain’s flood victims express grief and anger at one-year memorial.
To address rising flood risks, the OECD recommended ‘restricting new development in high-risk flood zones, discouraging further exposure, and expanding flood protection infrastructure’ as part of a broader effort to minimise future losses.
Despite these mounting environmental pressures, Spain continues to outperform most advanced economies, posting growth of 3.5% in 2024 and expected to reach 2.9% this year — more than twice the eurozone average. ALSO READ: Brussels confirms Spain as EU’s economic engine, lifting growth forecast to 2.9% this year.
The report attributed part of this strong performance to migration, while also underscoring persistent challenges such as an ageing population and an unemployment rate of 10.45%, the highest in the European Union. ALSO READ: Spain’s population reaches all-time high of 49.4 million, driven by immigration.
To bolster long-term resilience, the OECD called for ‘structural reforms’ aimed at raising GDP per capita and strengthening fiscal stability, highlighting the need to embrace digital innovation as artificial intelligence becomes more widespread.
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Spain’s economy remains resilient, supported by strong investment, services exports and robust job creation.
— OECD ➡️ Better Policies for Better Lives (@OECD) November 26, 2025
To sustain growth, reform efforts should focus on strengthening public finances, boosting productivity, and tackling climate risks.
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