Catalonia's Economic Growth Matches National Rate Amid Slowdown
Catalonia's GDP growth in Q2 2025 matches Spain's rate, despite signs of slowdown.
Key Points
- • Catalonia's GDP grew by 2.8% in Q2 2025, matching Spain's growth rate.
- • The agriculture sector showed remarkable growth at 7.5%, recovering from droughts.
- • Service sector growth slowed to 3.1%, down from 3.6% in Q1 2025.
- • Overall, despite a slowdown, Catalonia's economy is still performing better than the EU average.
In the second quarter of 2025, Catalonia's economy recorded a GDP growth of 2.8%, aligning with the national growth rate of Spain. This marks a significant shift, as Catalonia had previously outpaced Spain's growth for an extended period. According to the latest data from Idescat, the Generalitat's statistical institute, while this represents a decrease from earlier quarters, Catalonia's growth remains notably above the EU average of 1.5% and the eurozone’s 1.4%. Major European economies such as Germany and Italy saw minimal growth, with figures at 0.4% and 0.1% respectively, and France faring slightly better at 0.7%.
On a quarterly basis, Catalonia's GDP growth was recorded at 0.6%, marginally less than Spain's 0.7%, contributing to the perception of economic deceleration. Analysts attribute the slowdown in Catalonia to a combination of record-high growth rates in 2024 and continued uncertainty in the global market, particularly concerning trade relations with the United States.
Sector-specific performance shows a mixed bag of results. The agriculture sector experienced a robust recovery, achieving a significant growth rate of 7.5%, bouncing back after previous years marred by drought. However, this is down from a remarkable 9.9% in Q1 2025. The service sector, which constitutes approximately 70% of Catalonia's GDP, also grew at a respectable 3.1%, although this is a decline from the 3.6% seen in the prior quarter. Essential contributors to this service sector growth included hospitality, legal services, and retail. Meanwhile, the construction industry maintained a steady growth rate of 2.3%, while the industrial sector continued to struggle, growing just 1.4%, down from 2.1% in the earlier quarter.
Overall, while Catalonia's economy is experiencing a slowdown, it remains on solid ground compared to broader European performance, with signs of resilience amidst challenging conditions.