Spain Enters Top 12 Global Economies with $2 Trillion GDP in 2026

Spain's economy marked a significant milestone in 2026 by surpassing $2 trillion in Gross Domestic Product (GDP), officially placing it as the 12th largest economy worldwide. This achievement reflects continued economic resilience and growth, with a 2.8% GDP increase reported in 2025, driven by strong internal demand thanks to consumption and investment.

According to official data, Spain's nominal GDP reached approximately €1.69 trillion, fueled by robust consumer spending and capital formation. The economy's expansion outpaced the eurozone average and marked the fifth consecutive year of growth following the downturn caused by the COVID-19 pandemic in 2020. Notably, employment surged with over 600,000 new jobs created in 2025, further reducing the unemployment rate to below 10% for the first time since 2008.

President Pedro Sánchez highlighted that Spain has remained the fastest-growing advanced economy for two years running, while Economy Minister Carlos Cuerpo pointed to record job creations and a falling inflation rate, which dropped to 2.4% at the beginning of 2026.

Despite this accomplishment, the International Monetary Fund (IMF) forecasts that Mexico could surpass Spain's GDP by 2028. Spain's population, currently at 49.6 million, is expected to grow by three million people by 2030 due primarily to immigration, bolstering the labor force and sustaining economic momentum. However, concerns remain surrounding the extensive growth model, including potential pressures on affordable housing due to increased demand from population growth.

This advance signifies Spain's emergence as a key economic player globally, ahead of economies like Australia, South Korea, and Mexico, and reflects a strategic shift supported both by demographic expansion and investment. With expectations for continued GDP growth in 2026, Spain is demonstrating economic strength despite challenges posed by global geopolitical conditions and trade tensions.