Spain's Economic Growth Set to Outpace EU in 2025
Madrid, Tuesday, 18 November 2025.
Spain’s GDP is forecasted to grow by 2.9% in 2025, fueled by strong domestic demand, surpassing the EU average of 1.4%. The growth opens doors for U.S. business expansion.
Economic Forecast and Government Projections
Spain’s economic growth forecast of 2.9% for 2025 has been confirmed by both the Spanish government and the European Commission, placing Spain as a leader in economic recovery within the EU. This growth rate, recently revised upwards from initial estimates, is substantially higher than the EU average of 1.4% and the eurozone’s 1.3% forecast. The revisions reflect Spain’s resilience in the face of global economic challenges, driven by robust domestic demand and strategic investments [1][2][3].
Drivers of Economic Growth
The anticipated growth in Spain’s GDP is largely attributed to strong domestic consumption, bolstered by an increase in household disposable income and wealth. Private consumption is expected to rise by 3.3% in 2025, underpinned by a surge in spending on durable goods and services. Additionally, significant contributions from the Next Generation EU (NGEU) funds are expected to further fuel economic activity [2][4].
Impact on Employment and Inflation
Spain’s labor market is projected to experience steady improvement, with unemployment rates expected to fall from 10.4% in 2025 to below 10% by 2027. This marks a significant milestone as employment levels rise, contributing positively to economic growth. Concurrently, inflation is forecasted to slow to 2.6% in 2025 and further decrease to 2.0% by 2026, driven by a moderation in food prices and service costs [1][3][4].
Opportunities for International Investors
The positive economic outlook for Spain presents a fertile ground for international investors, particularly those from the United States looking to expand into European markets. The anticipated economic growth, coupled with Spain’s strategic geographical position and integration within the EU, offers attractive opportunities for business expansion and investment. As Spain continues to outperform expectations, it remains a focal point for investors seeking stability and growth potential [2][3][5].