The Spanish economy registered growth of 0.6% in the third quarter of the yearwhich represents a slight slowdown of one tenth compared to the previous quarter. This lower progress is mainly attributed to the behavior of the foreign sector, which subtracted seven tenths from growth, while national demand, on the other hand, contributed 1.3 points to economic growth during the summer months.
The National Institute of Statistics (INE) published data on National Accounting which show that The year-on-year growth of the Gross Domestic Product (GDP) stood at 2.8% in the third quarterone tenth less than in the previous quarter. This figure represents the lowest rate in almost two years, since the fourth quarter of 2023. In addition, both the quarterly and year-on-year growth of the Spanish economy in the second quarter of the year has been revised downwards by one tenth, standing at 0.7% and 2.9%, respectively.
According to the Ministry of Economy, GDP growth in the third quarter confirms «the dynamism of the Spanish economy.» They highlight that this is the ninth consecutive quarter with GDP growth of 0.6% or higher compared to the previous quarter. Domestic demand was the main driver of growth, driven by consumption and investment, despite an environment of geopolitical and commercial uncertainty at the international level.
During the third trimester, Household final consumption spending increased by 1.1%reflecting an increase in the growth rate compared to the previous quarter. This increase is attributed to the strength of the labor market and the increase in household purchasing power. On the other hand, public spending experienced a growth of 1.3%the largest rebound since the third quarter of 2024, while investment increased 2.1%, the highest rate since the last quarter of 2024.
The Government and various national and international institutions forecast GDP growth of 2.9% or higher in 2025. Spain is expected to lead growth among the main advanced economies, doubling the growth of the European Union as a whole. In addition, a growth of 1% is projected at the beginning of 2026, which generates confidence in companies, investors and workers, positioning Spain as a leader among its community partners.
The foreign sector had a negative impact on growth in the third quarter, with a 0.6% decrease in exports, breaking a streak of several quarters of increases. On the other hand, imports moderated their growth by seven tenths, standing at an increase of 1.3%.