Revealed on
The Spanish economic system is constant on a robust progress trajectory regardless of world commerce uncertainties, with nationwide output (GDP) rising by 0.7% quarter-on-quarter from April to June.
GDP jumped by 2.8% year-on-year, based on information revealed on Tuesday by the Nationwide Statistics Institute (INE).
Within the earlier quarter, yearly progress was additionally recorded at 2.8% and quarterly progress got here in at 0.6%, permitting Spain to emerge as one of many quickest rising economies within the eurozone.
Whereas different main European economies are grappling with structural crises and the impression of geopolitical tensions, the Spanish economic system is progressing solidly.
Home demand has been key, contributing 0.9 share factors to quarterly progress. Family spending continued to be the primary driver, supported by an increasing labour market.
In actual fact, the second quarter marked a brand new milestone, with greater than 22 million folks in employment, based on the Labour Power Survey (EPA). On the similar time, the unemployment fee fell to 10.29%, its lowest stage since 2008, though nonetheless effectively above the eurozone common.
“The Spanish economic system was initially projected to comply with a strong progress trajectory by 2025, with a slight moderation anticipated in 2026. Most forecasts anticipated annual GDP progress within the vary of two.2% to 2.6% for 2025,” stated professor of macroeconomics Evi Pappa, on the Universidad Carlos III in Madrid. “Nonetheless, information from the primary and second quarters of 2025 point out that Spain is surpassing these expectations,” she added.
Miguel Cardoso-Lecourtois, chief economist at BBVA Analysis, instructed Euronews that the “engines of progress” in Spain are nonetheless altering as overseas tourism and authorities consumption gradual. The latter is affected by political fragmentation, stopping the approval of a brand new finances, whereas home insurance policies to sort out overtourism are slowing spending by non-Spanish residents.
“Development is now extra tilted in direction of home consumption and funding,” stated Cardoso-Lecourtois. “That is taking place as inflation is coming down (power costs), employment progress continues to be sturdy, wages proceed to extend and rates of interest go down. … Though authorities consumption is weak, public funding is comparatively sturdy due to emergency funds geared toward serving to flood victims in Valencia and NGEU funds.”
It additionally seems that the Spanish economic system will escape vital direct results from the current commerce settlement between the US and the European Union, which features a new 15% tariff on many EU exports to the US.
“Given Spain’s small share of commerce with the US and robust home economic system, it appears effectively positioned to proceed to outperform the euro space over the approaching quarters,” stated Ángel Talavera, head of Europe economics at Oxford Economics.
Peter Vanden Houte, chief economist with ING, instructed Euronews that Tuesday’s GDP figures imply Spain’s 2.6% annual progress goal is “actually achievable”. He added that rate of interest cuts are additionally driving the development trade in Spain, supporting progress.