Overview

• The European Commission increased Spain's 2025 GDP growth forecast from 2.3% to 2.6%, citing strong consumer spending and investment.
• Spain's economy grew by 0.6% in early 2025, fueled by private consumption, rising wages, and a robust labor market.
• Brussels predicts Spain will outperform major eurozone economies, including France (0.6%), Italy (0.7%), and Germany (0%).
• Despite resilient domestic demand, the Commission warns of negative export contributions over the next two years due to ongoing US-EU trade tensions.
• Spain's fiscal outlook improved, with deficit projections lowered to 2.8% of GDP in 2025 and 2.5% in 2026, alongside stabilized debt reduction.