“Spain’s economy grew by 0.6% over the third quarter, following a robust second quarter, as external demand weakened. With signs of cooling in industrial activity and tourism, growth is expected to normalise over the coming quarters and into 2026. We expect Spain’s GDP growth to reach 2.7% in 2025, followed by a further normalisation to 2.2% in 2026. Spain’s economy slowed in line with expectations. Spain’s economy has moderated to a still solid 0.6% quarter-on-quarter growth in the third quarter, following a robust second quarter with 0.8% growth, which was driven by private consumption, investment, and inventory restocking. On a year-on-year basis, GDP expanded by 2.8%. Domestic demand remained resilient, with strong private consumption and investment reflecting increased household spending power and the continued impact of EU funding. However, external demand growth turned negative as export growth weakened, a trend likely to be seen across Europe as tariffs start to bite over the third quarter.”
Morten W. Langer
