Spain GDP Growth Confirmed at 0.6% in Q1

Spain’s economy grew by 0.6% qoq in the first quarter of 2026, following a 0.8% expansion in the final quarter of 2025 and matching the preliminary estimate. Household consumption rose 0.6% (vs. 0.9% in Q4) and public spending returned to growth, increasing 0.4% after a 0.9% decline. Investment activity weakened significantly, with gross fixed capital formation rising just 0.4%, compared with a 2.1% increase in the previous quarter. Investment in machinery and equipment contracted by 1.9%, reversing a strong 6.3% gain in Q4. On the external side, exports fell 0.6% after a 0.7% increase in the previous quarter, while imports declined 1.0%, reversing a 1.2% rise. On an annual basis, Spain’s economy expanded 2.7% in the first quarter, the same as in the previous quarter and in line with the initial estimate. The Bank of Spain expects ?GDP to grow ?0.5%-0.6% qoq in Q2, and sees the economy expanding 2.3% in 2026 and ?1.7% in 2027.

Spain’s GDP grew by 0.6% in the first quarter of 2026, more than market expectations of 0.5% and compared with 0.7% in the previous period. Domestic demand remained the main driver, contributing 0.4 pp to growth, while external demand added 0.2 pp. Household consumption rose by 0.6%, while public spending increased by 0.2%. Investment showed only modest momentum, with gross capital formation edging up by 0.1%. On the external side, exports declined by 0.5%, a notable slowdown from the previous quarter, while imports dropped more sharply by 1.2%. From the supply perspective, all major sectors posted positive contributions. Industrial activity grew by 0.4%, with manufacturing accelerating to a 0.5% increase. Construction expanded marginally by 0.1%, losing significant momentum. Services remained solid, though slightly weaker, at 0.7%. Meanwhile, primary sectors rebounded strongly, rising 3.3%. Year-on-year, GDP increased by 2.7%, slightly improving from the previous quarter.

Spain’s GDP grew by 0.8% in the fourth quarter of 2025, in line with previous estimates and slightly accelerating from 0.6% in Q3. Growth was mainly driven by domestic demand, which contributed 0.9 percentage points, while external demand slightly reduced growth by -0.1 points. Household consumption rose by 0.9% and public spending by 0.2%, while investment (gross capital formation) increased notably by 1.9%. Exports grew 0.8%, improving significantly from the prior quarter, whereas imports rose 1.2%. On the supply side, all major sectors showed stable or positive performance. Industry grew 0.3%, though manufacturing slowed to 0.1%. Construction was the strongest sector, expanding by 2.2%, and services increased by 0.9%. Primary sectors remained flat after a previous decline. Year-on-year, GDP rose by 2.7%, maintaining the same pace as the previous quarter.