Spain’s economy has shown resilience in the face of disruption caused by the Middle East conflict, recording growth of 0.6% in the first quarter of this year, according to official figures released on Thursday — a result in line with forecasts.
The surge in energy costs and inflation driven by the war has raised concerns about the global economic outlook, with the Bank of Spain cautioning last month about the risk of a ‘significant slowdown’.
However, the January-to-March growth data published by the National Statistics Institute (INE) aligns with projections that the economy will expand by 2.3% in 2026.
‘The Spanish economy is maintaining its growth rate in a start to the year marked by the war in Iran,’ Economy Minister Carlos Cuerpo (main image) said in a video shared with media (see link below). ALSO READ: Spain’s economy minister Carlos Cuerpo appointed first deputy prime minister in cabinet reshuffle.
‘We continue to lead among the European Union’s major economies,’ notably thanks to household consumption and business investment,’ Cuerpo added.
The conflict, which began in February following US–Israeli strikes, led Iran to shut the Strait of Hormuz — a crucial route for global oil and gas shipments — sending shockwaves through energy markets.
Despite this, Spain’s left-leaning government believes the country will be less exposed than many European counterparts, pointing to strong investment in renewable energy and a broad mix of energy sources.
Renewables account for roughly 55% of Spain’s energy supply, while most of its crude oil imports come from the Americas and Africa.
To mitigate the impact of the crisis, the government has rolled out a €5 billion support package for households and businesses, including tax reductions and direct aid to the most affected sectors. ALSO READ: Spain unveils €5bn emergency package to offset energy shock from Middle East conflict.
Meanwhile, inflation eased to 3.2% in April, driven by lower electricity prices, although fuel costs continued to rise, according to a preliminary estimate issued on Wednesday by the INE. ALSO READ: Spain inflation jumps to 3.3% in March as Iran war sends fuel prices higher.
Spain’s economy has consistently outperformed many developed nations in recent years, buoyed by relatively lower energy prices, strong domestic demand, and a tourism rebound following the Covid-19 pandemic.
In 2025, it recorded one of the highest growth rates in the European Union, at 2.8%. ALSO READ: Confirmed: Spanish economy grew 2.8% in 2025, roughly double eurozone average.
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Cerramos una semana de datos positivos:
— Carlos Cuerpo (@carlos_cuerpo) April 30, 2026
🔸️532.000 nuevos empleos en último año
🔸La inflación se modera en abril, hasta el 3,2%
🔸Crecemos un 0,6% este trimestre, el 2,7% interanual
¡Seguimos! pic.twitter.com/4AP3i7xo68
Contabilidad Nacional Trimestral de España. Primer trimestre 2026. Avance @es_INE
— INE España (@es_INE) April 30, 2026
El #PIB registró una variación del 0,6% en el primer trimestre respecto al trimestre anterior en términos de volumen. Esta tasa fue dos décimas inferior a la del cuarto trimestre de 2025
Nota de… pic.twitter.com/bGHvPLfoNy
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