Spain’s final GDP growth for the fourth quarter was recorded at +0.8%, consistent with the initial estimate. This information was released by the National Statistics Institute (INE) on March 26, 2025.
In 2024, the Spanish economy experienced a growth rate of 3.2%. This performance positioned Spain as a stronger performer within the euro area, particularly when compared to the economic difficulties faced by Germany and France.
Spain’s economic data confirms steady growth, reinforcing its position as one of the better-performing economies in the euro area. The 0.8% expansion in the final quarter aligns with previous estimates, reducing uncertainty around potential revisions. Over the course of 2024, the economy grew by 3.2%, a pace that stood out against the more sluggish progress of Germany and France.
Household spending and service sector output contributed to this momentum, with tourism continuing to play a key role. Meanwhile, Germany struggled with weak industrial production, while France faced dampened consumer demand. These contrasting trends underline the divergence in economic conditions across the euro area’s leading economies.
Inflation data and central bank policies will dictate attention moving forward. The European Central Bank (ECB) has maintained a cautious stance, reflecting concerns over inflation persistence despite cooling price pressures. Recent comments from ECB officials suggest they are watching inflation indicators closely before considering any policy adjustments. Market participants have largely priced in a potential rate cut by mid-year, though upcoming data could shift these expectations.
Labour market conditions in Spain remain stable. Unemployment figures have shown gradual improvement, reinforcing consumer confidence. However, wage growth trends require monitoring, as they influence spending power and, in turn, inflation dynamics. If wages push higher at an unexpected pace, policymakers may reassess their approach, affecting market sentiment.
External risks remain present. Global trade conditions, energy costs, and geopolitical tensions continue to influence investor sentiment. Fluctuations in these areas may trigger short-term adjustments in pricing models. Given this backdrop, market activity is likely to reflect shifting interest rate expectations, inflation trends, and economic signals from major economies.
By maintaining close attention to updated economic reports, shifts in policy discussions, and global market developments, informed decisions can be made. The coming weeks will bring fresh economic data, which may either reinforce current viewpoints or challenge prevailing assumptions. Staying ahead of these shifts requires ongoing awareness and a readiness to adjust to new information as it emerges.
