Spain's Economic Growth Accelerates with Financial Innovation and Retail Dynamics in 2025
Spain's economy grows robustly in 2025 driven by financial innovation and steady retail expansion despite Primark’s slowed growth.
- • Spain’s GDP projected growth of 2.6% exceeds Eurozone average in 2025.
- • Financial sector leads innovation with AI enhancing decision-making.
- • Primark’s growth in Spain slows to 4% but revenue rises to €1.854 billion.
- • Primark expands to 64 stores in Spain and the Canary Islands.
- • Private capital vital for Spain’s infrastructure and energy transition future.
Key details
Spain has emerged from a decade of economic challenges to become a leading growth economy in Europe in 2025. The country’s GDP is projected to grow by 2.6% this year, significantly outpacing the Eurozone average, supported by strong domestic demand and a revitalized financial sector driving innovation, according to Cinco Días (ID 91566). Spain’s credit rating improvements have restored investor confidence, attracting international capital and enhancing its status as a financial hub, especially with growing inflows from Latin America.
The financial sector in Spain is undergoing a transformation, shifting from traditional lending to becoming a key driver of digitalization and technological innovation. Artificial intelligence (AI) plays a central role in this evolution, accelerating and improving decision-making processes within finance, as highlighted by the integration of AI-driven tools by companies such as Bloomberg. The rise of private capital is also crucial for Spain’s infrastructure and energy transition, marking the next frontier for the economy.
Meanwhile, in Spain’s retail sector, Primark’s growth has notably slowed. The group's growth rate in Spain declined from 19% in 2023 to about 4% in 2024. Despite this slowdown, Primark increased its revenue in Spain to €1.854 billion in 2024 and expanded its store network to 64 locations across the Iberian Peninsula and the Canary Islands, including a new store in Madrid’s Salamanca district (Modaes, ID 91569). Operating profit for Primark in Spain decreased by 9.22% to €42.89 million, although net profit rose by 4.41% to €40.28 million. Globally, Primark reported a 5% revenue increase to £9.448 billion (€11.296 billion) and a 53% rise in operating profit.
Looking forward, AB Foods forecasts modest growth for Primark, with around 1% expansion expected in the latter half of 2025 and a slight decline in comparable sales. This reflects a cautious retail environment amid broader economic growth and innovation in Spain.
Spain’s progress reflects a blend of economic resilience, technological advancement, and market adaptation. From robust GDP figures and transformative AI in finance to moderated but steady retail performance, Spain is poised to lead into the next phase of European economic transformation with innovation and renewed confidence at its core.