OECD Projects Spain as the Fastest Growing Advanced Economy in 2025

The Organization for Economic Cooperation and Development (OECD) has confirmed Spain as the advanced economy set to achieve the highest growth in 2025, with a projected GDP increase of 2.9%. This projection positions Spain as a key growth engine in Europe, supported by strong technological investments, favorable fiscal policies, and a robust labor market.

Globally, the OECD expects the world's GDP to expand by 3.2% in 2025 and slow slightly to 2.9% in 2026, with a rebound to 3.1% in 2027. Among the 38 OECD member countries, the average growth rate is forecasted at 1.7% for 2025 and 2026, rising modestly to 1.8% in 2027. In comparison, the Eurozone is expected to see GDP growth of 1.3% this year and 1.2% in 2026, picking up slightly to 1.4% in 2027, while the United States is projected to grow by 2% in 2025.

Inflation remains a concern, particularly in Spain where the rate stood at 3.1% in November, above the Eurozone average of 2.2%. The increase was mainly driven by fresh food prices, despite falling energy costs. The OECD warns of potential risks, such as the overvaluation of assets linked to artificial intelligence, which could lead to market corrections. It emphasizes the need for central banks to continue gradual rate reductions with readiness for adjustments if new pressures emerge, alongside vigilant regulation of non-bank financial entities and cryptocurrencies to maintain financial stability.

Labor markets are showing signs of easing, with job vacancies returning to pre-pandemic levels, potentially leading to slower job creation. The OECD projects the unemployment rate to hold steady at around 5.7% through 2027.

Spain’s prominent forecast highlights its combination of technological investment, sustainable fiscal policy, and a resilient workforce, distinguishing it among advanced economies as it prepares for robust growth amid a complex global economic landscape.