Spain GDP Growth Confirmed at 0.6% in Q1

The Spanish economy grew by 0.7% qoq in Q2, above 0.6% in Q1 and beating expectations of 0.6%, according to preliminary estimates, underscoring the economy's continued resilience and robust growth momentum. On the expenditure side, household consumption rose by 0.7% (vs 0.6% in Q1), government spending increased by 0.3% (vs 0.6%) and investment went up 0.5% (vs 0.1%). Exports increased 0.8% (vs -0.6%) and imports also rebounded, rising 0.6% (vs -0.9%). On the production side, all major sectors recorded growth. Industrial activity expanded by 1% (vs 0.4%), with manufacturing output rising 0.7% (vs 0.4%), construction activity increasing 0.6% (vs -0.2%) and the services sector growing by 0.8% (vs 0.8%). Meanwhile, the primary sector expanded by a modest 0.2%, following a 3.3% jump in Q1. Year-on-year, the GDP grew 2.7%, matching the pace of the previous three quarters and above forecasts of 2.5%. The Spanish government expects growth o remain above 2% through 2029.

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.