Spain Economic Outlook
A service-based economy with a strong industrial base:
Spain is the fourth-largest economy in the Eurozone and is highly dependent on the services sector, particularly tourism, which accounts for around 12% of GDP. In addition, Spain has a strong industrial sector, with key industries including automotive manufacturing, renewable energy, and pharmaceuticals. The country has become a leader in wind and solar power, benefiting from its favorable climate and government incentives for green energy investment.
Tourism and real estate recovery:Spain’s economy suffered a sharp contraction during the COVID-19 pandemic, largely due to its reliance on tourism. However, the sector has rebounded strongly as international travel recovered, boosting GDP growth. Real estate, another pillar of the economy, has remained resilient, though affordability remains a concern due to rising housing prices in major cities such as Madrid and Barcelona.
Structural challenges and labor market issues:Spain has one of the highest unemployment rates in the Eurozone, particularly among youth, despite recent improvements. The labor market remains rigid, and the prevalence of temporary contracts has led to job insecurity. Additionally, high public debt—exceeding 110% of GDP—remains a long-term concern, limiting the government’s fiscal flexibility.
Spain’s economic prospects:The Spanish economy is expected to maintain moderate growth, supported by tourism, infrastructure investment, and renewable energy expansion. However, structural reforms in the labor market and improvements in productivity will be necessary for long-term competitiveness. Spain’s ability to manage inflation and debt levels while diversifying its economy beyond tourism will be crucial for its future economic stability.
Spain's Macroeconomic Analysis:
Nominal GDP of USD 1,722 billion in 2024.
Nominal GDP of USD 1,723 billion in 2024.
Nominal GDP of USD 1,722 billion in 2024.
GDP per capita of USD 35,082 compared to the global average of USD 10,589.
GDP per capita of USD 35,622 compared to the global average of USD 10,589.
GDP per capita of USD 35,589 compared to the global average of USD 10,589.
Average real GDP growth of 2.1% over the last decade.
Average real GDP growth of 2.1% over the last decade.
Average real GDP growth of 2.1% over the last decade.
Sector Analysis
In 2022, services accounted for 68.5% of overall GDP, manufacturing 11.5%, other industrial activity 17.7%, and agriculture 2.3%. Looking at GDP by expenditure, private consumption accounted for 55.6% of GDP in 2023, government consumption 19.9%, fixed investment 20.3%, and net exports 4.2%.International trade
In 2023, manufactured products made up 65.7% of total merchandise exports, mineral fuels 6.8%, food 17.3%, ores and metals 3.2% and agricultural raw materials 0.9%, with other categories accounting for 6.1% of the total. In the same period, manufactured products made up 64.5% of total merchandise imports, mineral fuels 14.6%, food 12.3%, ores and metals 3.3% and agricultural raw materials 1.0%, with other goods accounting for 4.3% of the total. Total exports were worth USD 415.90 billion in 2024, while total imports were USD 459.50 billion.Main Economic Indicators
Economic growthThe economy recorded average annual growth of 2.1% in the decade to 2024. To read more about GDP growth in Spain, go to our dedicated page.
Fiscal policy
Spain's fiscal deficit averaged 5.1% of GDP in the decade to 2023. Find out more on our dedicated page.
Unemployment
The unemployment rate averaged 16.3% in the decade to 2024. For more information on Spain's unemployment click here.
Inflation
Inflation averaged 1.9% in the decade to 2024. Go to our Spain inflation page for extra insight.
Monetary Policy
Euro Area monetary policy rate ended 2024 at 3.15%, up from 0.05% a decade earlier. See our Spain monetary policy page for additional details.
Exchange Rate
From end-2014 to end-2024 the euro weakened by 20% vs the U.S. dollar. For more info on the euro, click here.
Economic situation in Spain
Quarter-on-quarter GDP growth edged down in Q1 from Q4 due to weaker private spending growth. That said, exports gained steam and Spain remained the fastest-growing among the Euro area’s large economies. The country should retain this title in Q2, though our panelists expect momentum to ease slightly further. Looking at available data, economic sentiment remained in line with Q1’s solid reading in April–May. Meanwhile, higher U.S. tariffs should be hampering exports, albeit to a lesser extent than in other European countries: Spain only exports goods worth 1.2% of its GDP to the U.S., under the Euro area’s 3.0%. Lastly, a blackout on 28 April dented momentum, with estimates pointing to a GDP loss of EUR 0.2–1.6 billion. After the outage, gas use for electricity generation—costlier than renewables—rose by around 40%, which is likely to increase electricity prices ahead.Spain Economic Forecasts
Projections out to 2034.58 indicators covered including both annual and quarterly frequencies.
Consensus Forecasts based on a panel of 47 expert analysts.
Want to get insight on the economic outlook for Spain in the coming years? FocusEconomics collects projections out to 2034 on 58 economic indicators for Spain from a panel of 47 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts, and averaged to provide one Consensus Forecast you can rely on for each indicator. This means you avoid the risk of relying on out of date, biased or outlier forecasts. Our Consensus Forecasts can be visualized in whichever way best suits your needs, including via interactive online dashboards , direct data delivery and executive-style reports which combine analysts' projections with timely written analysis from our in-house team of economists on the latest developments in the Spain economy. To download a sample report on the Spain's economy, click here. To get in touch with our team for more information, fill in the form at the bottom of this page.