Spanish Universities Are Five Folding Every Cent Invested in Them, Study Shows

A study conducted by the Ministry of Universities has revealed that Spanish public universities account for 2.2 percent of the Gross Domestic Product (GDP), highlighting the importance of these institutions not only in education but also in economic development.

According to a press release by the official website of the President of the Government and Council of Ministers, for every €100 of public transfers received, these universities produce €110 of tax revenue, showing considerable profits for this industry, Erudera.com reports.

“Thus, for every €100 received from state and regional transfers, the Spanish public university system (SUPE) generated €505 in turnover, €293 in GDP and €115 in salary income,” the press release explains.

As a result, for every €100,000 received, Spanish universities were able to maintain 5.4 full-time equivalent jobs, while the same data reveals that SUPE has contributed to creating 438,926 full-time jobs, compromising 2.41 percent of the total employment in the country.

The full-time occupations that were maintained as a result of the Spanish taxation of education institutions included different positions such as research teaching staff or administration staff, restaurant and hotel services related to these service providers, and goods and services that derived from this activity, among others.

Nearly 70 percent of the impact generated by the SUPE economic sectors is focused on sectors other than education.

The changes and the funding objectives set by LOSU are on the right track," the Spanish Minister pointed out regarding the role of higher education institutions in the country’s economy.

The authorities point out the necessity to reverse the situation of under-financing of public universities, as these institutions aren’t an alternative to promoting teacher training, research and innovation, but also to contribute to the wealth of the country.

Recently approved Organic Law of the University System sets out a plan to raise the public spending on university education by at least one percent, following claims that universities are generating a total impact on the country’s economy that reaches contributions of 2.2 percent of the national budget.

Based on this data, Spanish universities are generating more revenue than what is invested in them, clearly showcasing the importance of these institutions to the Spanish economic boost, while international students can also be one of the reasons for these developments.

According to Erudera Statistics, there are 203,366 international students at Spanish universities, while the country of origin for international students is mainly Italy, Ecuador and France, all totalling over 54,000 students.