Spain's Economy Shows Strong and Broad-Based Growth in Second Half of 2025, Says CaixaBank Research
CaixaBank Research highlights Spain's strong and balanced economic growth in late 2025 across multiple sectors, overcoming international challenges.
- • Spain's economy shows notable dynamism with 15 of 22 sectors in expansion during H2 2025.
- • Growth driven by strong domestic demand, lower interest rates, labor market improvements, and European funds.
- • Manufacturing reverses two decades of decline, aided by lower energy cost increases compared to European peers.
- • GDP growth is broad-based and resilient amid global uncertainties like geopolitical tensions and protectionism.
Key details
CaixaBank Research reports that Spain's economy is experiencing a period of "notable dynamism" and solid expansion in the second half of 2025, marked by balanced and widely distributed growth despite global challenges. Out of 22 economic sectors analyzed, 15 are currently expanding, a dramatic improvement from just two sectors in 2023. This growth is underpinned by strong domestic demand, reduced interest rates, an improved labor market, and the deployment of European funds.
The GDP growth is described as "transversal and resilient," with a more homogeneous sectoral performance compared to past cycles, reflecting reduced vulnerability to specific shocks. Key dynamic sectors include construction, professional activities, ICT, and industry. Additionally, even traditionally weaker areas like the primary sector and textile industry are demonstrating moderate growth.
The manufacturing industry is notably reversing a two-decade decline, now growing at the economy's overall rate. This resurgence is linked to a new competitive advantage stemming from Spain's comparatively lower rise in energy costs versus other major European economies.
Despite international uncertainties such as geopolitical tensions, rising protectionism, and softened external demand, Spain's economy is holding firm. The data highlights a robust economic outlook supported by internal factors, reinforcing confidence in Spain's economic resilience and growth prospects moving forward.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
