Spain’s Economy Grows by 0.7% in Q4 2025 as Regions Show Varied Performance

Spain’s GDP grew 0.7% in Q4 2025, driven by private consumption and business investment, with Murcia and La Rioja showing contrasting regional dynamics.

    Key details

  • • Spain's GDP grew 0.7% in Q4 2025, a tenth higher than the previous quarter.
  • • Murcia recorded historic employment figures and attracted over €327 million in investment in 2025.
  • • La Rioja’s economy grew above the European average but faces challenges especially in the wine sector.
  • • Private consumption, employment growth, and business investment are key drivers of Spain’s economic expansion.

According to Spain’s Minister of Economy, Trade and Business Carlos Cuerpo, the country’s Gross Domestic Product (GDP) increased by 0.7% in the fourth quarter of 2025, an improvement of 0.1 percentage points over the previous quarter. This growth is chiefly attributed to strong private consumption fueled by employment gains and increased purchasing power, alongside a notable boost in business investment.

Regionally, Murcia emerged as a standout economic performer in 2025 with record employment levels and significant investment. The region achieved 677,862 Social Security affiliates, up by nearly 17,500 compared to the previous year, and attracted over €327 million in new projects, creating 469 jobs particularly in the green economy and well-being sectors. Murcia’s government highlighted its successful fourth Administrative Simplification Law and strategic initiatives like the Unit for Investment Acceleration (UNAI), which over the last decade has fostered €6.34 billion in investments and approximately 9,000 jobs. The region also reported exports exceeding €11.2 billion despite global economic challenges.

Meanwhile, La Rioja’s latest Economía Riojana journal warns of a more uncertain global economic outlook. Although the region’s economic growth remains above the European average, it is showing signs of moderation largely due to difficulties in the vitiviniculture sector. However, the service industry and resilient business fabric have helped maintain positive growth. Employment continues to increase but largely in low-skilled and part-time roles, constraining productivity improvements. The journal underscores urban enotourism as a competitive asset for La Rioja’s future.

Nationally, the overall Spanish economy reported a solid performance with GDP growth supported by robust domestic demand and growth in the labor market. The combination of increased private consumption, improved employment figures, and rising business investment seem set to sustain Spain’s economic momentum as it enters 2026.