Spain’s economy outperforms European peers with strong growth in 2025

Friday 30 January 2026 - 11:30

By: Sahili Aya

Spain’s economy outperforms European peers with strong growth in 2025

Spain’s economy recorded robust growth in 2025, clearly outperforming many of its European counterparts, according to preliminary figures released by the National Statistics Institute. The data indicate that economic activity accelerated toward the end of the year, resulting in an estimated annual expansion of 2.8%.

Growth gained momentum in the fourth quarter, with gross domestic product rising by 0.8% compared with the previous quarter. This marked an improvement from the 0.6% expansion registered earlier and exceeded market expectations, as analysts had anticipated a more moderate pace.

The stronger-than-expected performance highlights the resilience of the Spanish economy amid a challenging European environment characterized by weak demand and persistent uncertainty. Domestic consumption, tourism and investment are widely seen as key drivers behind Spain’s solid economic momentum.

With growth significantly above the euro zone average, Spain has positioned itself as one of the fastest-growing major economies in Europe, reinforcing optimism about its short-term economic outlook.