Spain Overtakes Japan in GDP Per Capita: How Services, Tourism, and Reforms Powered the Surge

Spain’s robust economic rebound and yen depreciation push its GDP per capita ahead of Japan’s for the first time, signaling shifting global economic dynamics.

Madrid/Tokyo — July 3, 2025:
In a striking shift in global economic rankings, Spain has overtaken Japan in GDP per capita, according to the latest IMF data. While Japan remains a much larger economy in absolute terms, the Southern European nation now boasts a higher per-person economic output in current US dollars.

In 2025, Spain’s GDP per capita stands at $36,190, compared to Japan’s $33,960 — marking a significant symbolic milestone. The same trend began in 2024, but this year’s data confirms a sustained lead for Spain.

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Behind Spain’s Economic Rise:

The surge in Spain’s per capita GDP is attributed to a strong post-pandemic recovery, especially in services and tourism. In 2024, Spain’s economy grew by 3.2%, outperforming Germany, France, and Italy. By contrast, Germany’s GDP contracted by 0.2%.

According to Ángel Talavera, Head of Europe Economics at Oxford Economics, “Spain has genuinely been one of the fastest-growing economies — but the gap is also magnified by the depreciation of the Japanese yen.”

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Since 2021, the yen has lost 40% of its value against the dollar, causing Japan’s dollar-denominated GDP to shrink on paper despite stable local output.

Structural Advantages and Reforms:

Spain’s growth is further supported by:

• Booming tourism and global demand for services.
• Government support and lower energy costs relative to peers.
• Labour market reforms post-European debt crisis that improved flexibility and productivity.
• Population growth, driving domestic demand and output.

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Spain’s unemployment rate, once among the highest in the EU, has declined due to structural reforms that eased firing restrictions and incentivized full-time employment.

Japan’s Struggles:

In contrast, Japan’s economic outlook has dimmed:

• Sluggish domestic demand and low innovation, per Nikko Research Center.
• Labour inflexibility and ageing population causing productivity bottlenecks.
• Heavy reliance on stimulus for energy subsidies, wages, and infrastructure.
• A weak yen, rising inflation, and threats from US tariffs add to the pressure.

Once the world’s second richest nation in GDP per capita (behind Luxembourg in 2000), Japan now ranks 38th globally.

Looking Ahead: Spain’s Lead May Hold:

According to the IMF, Spain is likely to maintain its lead in GDP per capita until at least 2030, when its figure is projected to rise to $42,300, versus $41,700 for Japan.

As consumer preferences globally shift toward service-driven economies, countries like Spain stand to benefit from the expanding role of services, which now make up 67% of global GDP, up from 53% in 1970 (WTO data).

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Spain GDP per capita, Japan economy, IMF report, Spanish economic growth, Japanese yen depreciation, tourism in Spain, global economic rankings, labour market reforms, services sector boom, Asia-Europe economy comparison