Business investment maintains the growth of the Catalan economy
Catalan GDP is growing at a slightly slower rate than Spain's, but well above the European average.
BarcelonaThe Catalan economy maintained a growth rate above the European Union average in the second quarter, but slightly lower than the growth recorded in Spain as a whole, according to data on the Catalan gross domestic product (GDP, the indicator that measures economic activity) published this Monday by Idescat, the statistical institute of the Generalitat (Catalan government). Investment, especially business investment, was one of the driving forces behind growth in Catalonia, amid a slight slowdown in household and government consumption and a drop in exports.
Specifically, between April and June, Catalan GDP increased by 0.6%, four-tenths more than the previous quarter. Compared to the second quarter of 2024, growth was 2.7%, which represents a decrease of one-tenth compared to the first estimate by Idescat published last month. The 2.7% places the growth rate of the Catalan economy one figure below the Spanish average, also awaiting the update of the data that the National Institute of Statistics (INE) will publish next week.
However, the growth of the Catalan economy continues for another quarter, well above the European average: In the eurozone, the annual GDP growth rate was 1.4% in the second quarter, while in the EU as a whole it was 1.5%, according to Eurostat, the community statistical agency.
The regional minister of Economy, Alícia Romero, assured this Monday in a message to X that the data confirm that Catalonia "is heading in the right direction." The head of Economy of the Generalitat highlighted that growth was "slower than in the first quarter," but nevertheless "high," which shows the "good pace" of growth of Catalan GDP.
Investment stretches the cart
Investment was the main pillar of growth in the face of slowing public and private consumption, particularly business investment. Thus, investment in capital goods (machinery, software, vehicles, and other productive assets used by companies) increased by 9.3% in the second quarter compared to the same period last year.
Likewise, investment in the construction sector also grew, albeit less rapidly, by 3.5%. Overall, investment grew by 5.3% annually, an increase compared to the first quarter of this year, when it stood at 4.7%.
The strong performance of investment is positive news for the Catalan economy, as investment is one of the factors that most influences productivity, traditionally one of the weak points of the Catalan and Spanish economies. Furthermore, investment stood out even more last quarter due to the slowdown in household consumption, which fell from 4.1% year-on-year growth in the first three months of 2025 to 3.5% in the previous quarter.
Public administration consumption also reduced growth, despite maintaining clearly positive figures, increasing by 2.2% year-on-year (in the first quarter, the variation had been 3.2%).
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