24th August 2026
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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.

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