Overview
- Spain's GDP rose 2.8% in 2025 after a 0.8% quarter-on-quarter gain in Q4, beating analyst expectations in the flash estimate.
- Sustained domestic demand, rising purchasing power, and a larger workforce linked to migration underpinned Spain's outperformance versus major euro peers.
- France grew 0.9% in 2025 with Q4 growth easing to 0.2% quarter on quarter, topping the 0.7% assumption used for its budget planning.
- INSEE said Q4 dynamics in France included a one-point drag from inventory rundown, a 0.9-point boost from net trade, and a 0.3-point lift from domestic demand.
- French ministers voiced hopes for about 1% growth in 2026 as the government moves to pass its budget, while Spain's economy chief cited robust January data supporting a 2.2% goal.