Spain GDP Growth Rate Beats Forecasts in Q2

The Spanish economy expanded 0.7% qoq in Q2 2026, slightly faster than the 0.6% growth in Q1 and in line with the preliminary estimate. Domestic demand contributed 1.1 percentage points to growth, while external demand made a negative contribution of 0.5 percentage points. Both household spending (0.7% vs 0.6% in Q1) and gross fixed capital formation (1.4% vs 1%) expanded at a faster pace while growth steadied for public expenditure (0.5% vs 0.5%). Meanwhile, both exports (1% vs 0.9%) and imports (2.6% vs 0%) increased at a faster pace. On the production side, all major sectors recorded growth except for agriculture, forestry and fishing (-0.1% vs 4.2%). Industry grew 0.7% (vs 0.5%), services expanded 0.7%, the same as in Q1 and construction rebounded (1% vs -0.3%). Year-on-year, the economy grew 2.6%, the same as a downwardly revised 2.6% in Q1 and below a preliminary of 2.7%. The OECD recently revised its forecast for GDP growth in 2026 to 2.6%, matching the government's projection.

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.