Spain's economy outperforms forecasts as second-quarter growth accelerates

07:30

By: Sahili Aya

Spain's economy outperforms forecasts as second-quarter growth accelerates

Spain's economy expanded at a faster pace during the second quarter of 2026, reinforcing its position as one of Europe's strongest-performing major economies despite ongoing global uncertainty.

Preliminary figures released by the National Statistics Institute showed that gross domestic product (GDP) grew by 0.7% quarter-on-quarter, improving from 0.6% in the first quarter.

The result also exceeded economists' expectations, as analysts surveyed by LSEG had forecast another 0.6% quarterly expansion.

Tourism continues to support economic resilience

Spain has consistently outperformed many of its European peers, with robust domestic activity complemented by exceptionally strong tourism demand.

The country's economy expanded 2.8% in 2025, supported in large part by record numbers of international visitors, which have boosted spending across hospitality, transportation, retail and other service industries.

The tourism sector continues to play a central role in sustaining employment and consumer demand.

Broad economic momentum remains intact

The latest GDP figures suggest Spain has maintained solid economic momentum entering the second half of the year.

The stronger-than-expected performance indicates that household consumption, business activity and services have remained resilient despite broader economic headwinds affecting many European economies.

Analysts will now closely monitor upcoming economic data to assess whether this pace of expansion can be sustained through the remainder of 2026.

Spain remains one of Europe's growth leaders

While several European economies continue to experience sluggish growth, Spain has emerged as one of the region's most resilient performers.

The combination of a vibrant tourism industry, steady domestic demand and improving business activity has helped the country maintain a stronger growth trajectory than many of its neighbors.

The latest figures reinforce expectations that Spain will remain a key driver of economic growth within the euro area if current trends continue.