Spain’s Economy Expands 0.6 Percent in Early 2025
(MENAFN) The Spanish Statistical Office (INE) confirmed on Wednesday that Spain’s economy expanded by 0.6 percent during the first quarter of 2025.
This figure represents a slight 0.1 percent dip compared to the final quarter of 2024, yet it underscores a solid start for Spain amid a turbulent global landscape marked by U.S. President Donald Trump’s escalating tariff disputes and ongoing conflicts in Ukraine and Gaza.
Spain’s GDP gains in the first quarter were driven primarily by robust private consumption and rising investment levels.
Private consumption grew by 0.6 percent, while investment climbed 0.9 percent—surpassing forecasts by 0.3 percent—though this was notably lower than the 3.0 percent jump seen in the last quarter of 2024.
Carlos Cuerpo, the minister of economy, trade, and business, told Spanish broadcaster RTVE on Wednesday morning, “The strong growth momentum of the Spanish economy at the beginning of the year has been confirmed. In 2024, Spain was the advanced country with the highest growth, and in 2025, everyone from the IMF to the OECD expects this to continue.”
Cuerpo also highlighted that the "good momentum" has translated into job growth, with approximately 230,000 new Social Security registrations recorded since the start of 2025.
Yet, Bank of Spain Governor Jose Luis Escriva issued a cautionary note, revising the bank’s growth projections downward due to “great uncertainty” stemming from the tariff war. The bank trimmed its forecast for 2025 from 2.7 percent to 2.4 percent and cut 2026’s outlook by 0.1 percent to 1.8 percent.
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