Spanish economy grows 0.8% in Q2, exceeding expectations

Spain's economy grew by 0.8% in the second quarter of the year, boosted by household spending and investment, despite a challenging international backdrop marked by tariff tensions.

The figure, confirmed on Friday by Spain's National Statistics Institute (INE), is one-tenth of a percentage point higher than the preliminary estimate released on July 29, and two-tenths above the growth rate recorded in the first quarter.

Year-on-year, GDP rose by 3.1%, three-tenths higher than initially forecast. This growth was primarily driven by strong domestic demand, which contributed 0.8 percentage points to quarterly growth, while net exports had a negligible impact.

Consumption and investment were the main drivers of growth this quarter. Final household consumption rose by 0.8%, while investment jumped by 1.8%. In contrast, public sector consumption declined slightly, by 0.1%.

Export growth eased to 1.3% in Q2, down from 2.4% in the previous quarter. Imports rose by 1.6%, down from 2.0% in the previous quarter.

All major sectors of the economy expanded in Q2, except for the primary sector, which contracted sharply by 6.4% – a significant reversal from the 6.4% growth registered in Q1. 

Industry saw a 0.9% increase, with manufacturing in particular gaining strength, posting a 1% rise, three-tenths higher than Q1.

Construction output surged by 2.3%, up two points, and services grew by 1%, six-tenths more than in the previous quarter.