Spain’s economy continues to shine as GDP grows by 0.7% in second quarter of 2025

SPAIN’S economy continues to buck the worldwide trend after posting a GDP growth figure of 0.7% for the second quarter of 2025 – the eighth consecutive quarterly rise of 0.6% or more.

Despite a gloomy international outlook – powered in part by Donald Trump’s tariff war against the European Union and China – the Spanish economy continues to go from strength-to-strength.

The data, published by the National Statistics Institute (INE), solidifies Spain’s position as the fastest-growing major economy in the Eurozone with annual growth topping 2.8%.

The news also comes hot on the heels of more impressive data after the unemployment rate fell to 10.29%, the lowest figure since 2008.

And more good news may be on the way with economists expecting little negative impact after a new tariff deal was struck between Washington and Brussels earlier this week.

Investment grew by 2.1% between April and June as traders increasingly view Spain as a safe bet.

Elsewhere, the rise was fuelled by a 0.8% rise in household consumption, a figure that ‘reflects the strength of the labour market and the increase in the purchasing power [of households]’, according to a report released by the Treasury.

READ MORE: Spain hits lowest unemployment rate since 2008 – as number of workers surpasses 22 million for first time

Domestic demand is the main driver of economic activity, the report added, helping to offset the fall in external demand caused by global uncertainty.

All major sectors posted positive numbers with industry growing by 0.8%, manufacturing by 1.1% and services by 1.2%.

The data also shines a light on a 1.5% improvement in productivity.

Workers are being rewarded, too – employee remuneration grew by 7.6% during the three-month period, while the number of full-time workers climbed by 3.7%, representing over half a million new jobs.

“After exceeding 22 million people in employment last week, today we continue with the good economic news,” said finance minister Carlos Cuerpo on Tuesday.

“The Spanish economy maintains its dynamism and its growth momentum.

“Enormous job creation, a high rate of growth, and all this is compatible with a recovery in purchasing power, an improvement in household wages and also an improvement in productivity,” he added.

“In short, the Spanish economy remains dynamic, positioning us among the leading advanced economies not only in Europe but also internationally,” the minister concluded.

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