The Spanish economy continues to grow for another year, according to data from the National Statistics Institute (INE), which has confirmed the 2.8% increase in the Gross Domestic Product (GDP) in 2025. This is verified by the final National Accounting data published this Thursday by the statistical institute, which only endorses the GDP estimates from the beginning of the year. Although, last November, some members of the Executive ventured a somewhat higher growth, of 2.9%. Of course, the pace of expansion has moderated to 7 tenths compared to 2024, showing that the Spanish economy continues to grow but at a slower rate than in previous years.
The annual data was accompanied by an acceleration in the last quarter, when the economy advanced 0.8%, the highest quarterly rate of the entire year. This rebound allowed us to consolidate a trend of sustained growth that has now reached 22 consecutive positive quarters, as highlighted by the Ministry of Economy.
Domestic demand sustains growth
The main driver of economic progress was once again national demand, which contributed 3.6 points to annual growth, driven above all by investment and household consumption. On the other hand, the foreign sector had a negative effect, subtracting seven tenths from the GDP, in a context of lower international dynamism.
Investment recorded one of the most notable performances, with an increase of 5.8%, the largest increase since 2023, while household consumption grew by 3.4%, supported by the improvement in employment and purchasing power. For its part, public spending moderated its advance to 2.4%, the lowest rate since 2022.
Growth with “solid” bases, according to the Government
The Ministry of Economy stressed that the growth of 2025 consolidates Spain as one of the most dynamic economies in the European environment, doubling the average pace of the eurozone. “Growth rests on solid foundations,” said department sources, who highlight the dynamism of consumption and investment, as well as the modernization of the productive fabric.
Among the factors that underpin this evolution, the Executive highlights the progress in exports of non-tourism services, which grew by 11.1%, and the increase in productivity per hour worked, which rose by 0.7%.
All sectors are growing, with construction at the forefront
Economic growth was widespread in all productive sectors. Construction led the advance with 5.6%, followed by services (3.2%), industry (2.3%) and agriculture (1.2%).
In nominal terms, GDP reached 1.68 trillion euros, a new historical maximum, after increasing by 5.8% compared to the previous year.
Slowdown in public spending and good signs for employment
In the last stretch of the year, growth was driven exclusively by domestic demand, while the foreign sector once again subtracted. In that period, household consumption increased by 0.9% quarterly, while public spending barely grew by 0.2%, evidencing a clear slowdown.
The labor market, for its part, maintained a positive evolution, although with less intensity. Employment increased by 2.8% year-on-year, five tenths less than in the previous quarter, although it has already had 17 quarters of growth.
What awaits for 2026
The advance of 0.8% in the last quarter leaves a start to 2026 with an estimated positive inertia of around 1.1%, according to Economía. However, future developments will depend largely on the international context, monetary policy and the ability to sustain the dynamism of investment and domestic consumption.
The balance for 2025 draws, in short, an economy that continues to grow vigorously, but that is beginning to show signs of normalization after the high rates of expansion in the years after the pandemic.