9th May 2026
Barcelona NewsBusinessCatalonia NewsEconomy & EmploymentMadrid NewsMain News

Confirmed: Spanish economy grew 2.8% in 2025, roughly double eurozone average

Spain’s economy grew by 2.8% in 2025, a rate roughly twice that recorded across the eurozone.

Figures released on Thursday by the National Statistics Institute (INE) confirm the preliminary estimate published at the end of January.

In the final quarter of the year, GDP increased by 0.8%, an acceleration of two-tenths compared with the previous quarter and the strongest quarterly performance of 2025.

Economic expansion was driven primarily by domestic demand, particularly household consumption and investment. Household spending rose by 3.1% year-on-year, while investment in capital goods climbed 5.9%.

Exports also showed solid momentum, growing by 3.8% compared with 2024 – an increase of 0.8 percentage points from the third quarter.

From the supply perspective, nearly all sectors recorded positive annual growth in value added, with the exception of the primary sector. Construction saw the sharpest rise at 7.2%, while services expanded by 3%. In contrast, the primary sector contracted by 0.6%.

Looking specifically at the fourth quarter, GDP was 2.7% higher than in the same period a year earlier.

Employee compensation increased by 7.8% year-on-year, supported by a 3.2% rise in full-time equivalent employment and a 4.5% increase in wages. ALSO READ: Spain approves 3.1% minimum wage rise to €1,221 per month, over 14 payslips.

In nominal terms, which include the effect of inflation, Spain’s total economic output reached €1,687.152 billion in 2025, representing a 5.8% increase compared with the previous year. ALSO READ: Spain’s inflation rate eased slightly in December, with 2025 closing at 2.7% average.

Enjoying the news from Spain in English? Add us as a preferred news source in Google.

Subscribe to the Weekly Newsletter from Spain in English.

Subscription Supporter Banner

 

 

 

 

 

Click here to get your business activity or services listed on our DIRECTORY.

Click here for further details on how to ADVERTISE with us.

Recent Posts

WHO chief heads to Canary Islands to oversee hantavirus cruise evacuation

News Desk

Renault puts Spanish production expansion on hold in labour dispute

News Desk

Spanish airlines hold fares steady despite Iran fuel crisis pressures

News Desk

Spain says it has ‘legal tools’ for quarantine as hantavirus cruise ship to ‘anchor offshore’ Tenerife

News Desk

Gaudí centenary and migration crisis to shape Pope Leo XIV’s Spain visit in June

News Desk

Three arrested in Spain over alleged abuse of 15 children at Jaén nursery

News Desk

Leave a Comment