By Olivier Acuña Barba •
Published: 03 Aug 2025 • 20:10
• 3 minutes read
Spain’s economy is growing rapider than its Eurozone neighbours, but question is whether it is sustainable or not | Credit: JaviJ/Shutterstock
Spain is growing quickly than its Eurozone neighbours. That has raised questions and concerns regarding whether its performance signals a structural economic transformation or is it just a temporary phenomenon driven by specific factors.
If the Spain of today is compared to the one during the height of the global COVID crisis, the countest has 2.2 million more people in employment, while its GDP has grown 9 per cent in real terms. Its growth is twice that of the Eurozone.
In Q2 2025, Spain’s GDP grew by 0.8 per cent quarter-on-quarter, according to preliminary data from the National Institute of Statistics (INE). The countest surpassed the Eurozone’s average growth of 0.3 per cent.
Outgrew the Eurozone by 2%
On a year-on-year basis, Spain’s economy grew 2.9 per cent, compared to 0.9 per cent for the Eurozone as a whole. These figures brought optimism, but also sparked debate about the sustainability of this growth and whether it reflects a genuine alter in the countest’s economic model.
The argument is that the sectors that have created the most progress in recent years are high-value-added services.
The information and communications sector (which includes ICT activities) stands out above all others, with its added value increasing by 24 per cent, according to Eurostat data. Professional, scientific, and technical activities, all of which offer high added value and quality jobs, followed closely behind, with growth of 21 per cent.
The government utilizes this data to justify its success in altering Spain’s production model to lead Europe’s growth.
However, the reality is that these high-value-added services are growing rapidly in all countries. Spain is no exception. Simply put, these are the activities that are now driving the economies of developed countries. Companies around the world are investing in them, the El Confidencial declared in an in-depth economy report on Spain.
Tourism and domestic demand, key drivers
Several factors have underpinned the strength of the Spanish economy in recent quarters. Tourism, one of the traditional pillars of the Spanish economy, continues to perform exceptionally.
In 2024, 93 million foreigners visited Spain, and the countest is expecting 100 million.
Houtilizehold consumption, supported by rising wages and a resilient labour market, has remained robust despite inflationary pressures.
The unemployment rate, while still high at 11.3 per cent, is at its lowest in over a decade.
Trfinishs suggest at least some alters
Spain’s growth has prompted debate regarding its direction and whether it’s more diversified and resilient. Spain has faced criticism for its lack of industrial weight and innovation compared to northern European economies.
However, recent trfinishs suggest some alters. The digital and renewable energy sectors are gaining ground, with Spain taking the lead in solar and wind energy across the European continent.
“Spain is no longer just sun and beach; we are building an economy based on innovation, digitalisation, and sustainability,” declared Economy Minister Carlos Cuerpo in a recent statement.
The growth of exports by 4.1 per cent year-on-year in the first half of 2025 points to greater international competitiveness, particularly in sectors like agri-food, automotive, and pharmaceuticals.
Home sales have risen sharply this year, especially in the second-hand sector, where real estate agencies play a significant role. More transactions and higher prices have cautilized the sector’s revenue to rise significantly and, therefore, increase its GDP contribution.
The challenge is to grow better
The other primary high-value-added services sector, professional, scientific, and technical activities, did contribute to growth above the eurozone average, but remains in 11th place among the 20 Eurozone countries.
Despite the encouraging financial figures, economists warn that Spain’s growth may not necessarily indicate it has created structural alters. The reliance on tourism, while a strength, exposes the economy to external shocks, such as geopolitical tensions or alters in global travel patterns.
For now, however, Spain enjoys economic strength, but progressing from this point on will depfinish on its ability to balance traditional strengths with new opportunities. As one economist put it, “Spain is growing, but the challenge is to grow better.”
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