Madrid's Economy Grows 2.9% in Q3 2025, Sustaining 21 Quarters of Expansion

The Community of Madrid reported a robust economic growth of 2.9% in the third quarter of 2025, surpassing the national average by one-tenth and marking its 21st consecutive quarter of expansion. This sustained growth highlights Madrid's position as a vital economic engine within Spain, contributing 19.8% to the country’s GDP.

Key sectors fueling this growth include the services sector, which expanded by 3.2%, with commerce, hospitality, transport, and communications rising by 4.4%. Construction also made significant gains, growing 2.8%, while industry grew by 1.3%. Private consumption increased by 3.2%, and investment surged by 5.3% during this period.

Since 2019, Madrid’s economy has expanded by 13.3%, supported by an environment of reduced bureaucracy and strong backing for business development. The region has seen the creation of over 20,000 new companies in the first nine months of 2025, reflecting its dynamic business climate. Foreign investment remains strong, with over 4.5 billion euros attracted in the first half of the year. Employment in the region also reached historic levels, with nearly 3.9 million workers registered under the Social Security system by November.

Isabel Díaz Ayuso, President of the Community of Madrid, emphasized the regional government’s commitment to supporting both large retailers and traditional small shops. She highlighted efforts to reduce tax burdens and maintain Madrid’s unique character, crediting these policies for the region’s rapid growth.

With these positive indicators, Madrid continues to reinforce its lead as a national economic powerhouse, demonstrating resilience and sustained expansion in a competitive economic landscape.