The Spanish economy recorded a growth rate of 2.8% in 2025, the National Statistics Institute (INE) announced today. In the fourth quarter, Gross Domestic Product increased 2.7% year-on-year and grew 0.8% compared to the previous quarter.
The IBGE highlights that domestic demand — private consumption and investment — continued to be the main driver of growth, with a positive contribution of 3.5 points to GDP in the last quarter. External demand had the opposite effect, reducing growth by 0.8 points due to the balance between exports and imports.
In current values, Spanish GDP reached 1.7 trillion euros in 2025, which represents an increase of 5.8% compared to 2024. In comparison, the Spanish economy remained above the average for the euro zone and the European Union, where growth was 1.5% and 1.6%, respectively, according to Eurostat estimates.
It is worth noting that the International Monetary Fund (IMF) recently revised downwards its forecast for Spain in 2026, setting it at 2.1%, attributed in part to the effects of the war in the Middle East. The body also points to a rise in inflation of up to around 3% in 2026, with a forecast drop to 2.2% in 2027, and recommends that fiscal responses be temporary, targeted and do not distort energy prices.
To mitigate the impact of the international shock, the Government of Pedro Sánchez approved a package of 80 measures, including the reduction of VAT on fuel, electricity and natural gas from 21% to 10%. The plan, estimated at R$5 billion, also includes support for transporters, the agricultural and fishing sector, and subsidies for fertilizers.
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