Consumption and construction maintain the growth of the Spanish economy

BarcelonaThe Spanish economy maintained growth during the second quarter of the year, despite the impact of the war in Iran on energy markets and international trade. Household consumption and the role of construction allowed the gross domestic product (GDP, the indicator that measures the size of an economy) of the State to maintain the good figures of recent years, as reported this Thursday by the National Statistics Institute (INE).

Specifically, the Spanish GDP grew by 2.6% between April and June compared to the same period in 2025, and 0.7% compared to the first quarter of this year. With this figure, the growth of the Spanish economy stands four tenths below the annual rate recorded by the Catalan economy, which in the second quarter grew by 3%, as published last week by Idescat, the statistical agency of the Generalitat.

Furthermore, Spanish growth significantly exceeds the European average: in the case of the 27 member states of the European Union, the GDP increase recorded between the months of April and June was 1.4% compared to the same period last year, and the countries that share the euro as their own currency grew by 1.2%. In fact, in the last three years, the Catalan and Spanish economies have had growth rates far superior to those of most European partners.

Likewise, the three economies in the eurozone larger than the Spanish one recorded rates lower than the Spanish one: Germany and Italy closed the quarter with an annual increase of 1%, and France with 0.5%. "Spain continues to lead among large advanced economies, according to the latest forecasts from major international organizations, in a context still marked by international uncertainty," highlights the Ministry of Economy in a statement sent to the media.

Domestic demand pulls the cart

Domestic demand –that is, economic activity taking place strictly within the territory of the State– was the main growth engine. In fact, of the 2.6 percentage points that the Spanish economy grew compared to a year ago, domestic demand contributed 3.5, but the external sector subtracted 0.9, according to data from the INE.

"Household consumption is consolidating itself as one of the main engines of the economy, driven by the strength of the labor market," points out the ministry. In this sense, it should be noted that Spanish households consumed 3.5% more in the second quarter of the year than in the same period last year, which is consistent with the good data on affiliations to Social Security, which are at historical highs. For its part, public administrations did so by 2.6% more.

Also noteworthy is the good performance of investment, which increased by a notable 5% compared to a year earlier, eight tenths more than the year-on-year increase recorded in the first quarter of this year. This data is particularly important because the productive investment of companies tends to be a driver of the economy's productivity in the medium and long term, one of the great pending tasks of the Catalan and Spanish business fabric.

Regarding exports, they increased by 1.5% annually, but imports grew at an even faster rate, of 4.3%, which explains the negative impact of the external sector on growth. This increase in imports is explained in large part by the rising cost of energy products derived from oil and natural gas following the start of the war in Iran and by the closure, by Tehran, of the Strait of Hormuz, which has sent energy costs soaring globally.

By sector, construction increased activity by 4.3% year-on-year, in the midst of a housing crisis. The services sector, which represents more than two-thirds of Spanish GDP, also grew, although less so: 2.9%.

Industry recorded an increase of 1.4%: in this area is the manufacturing sector, which increased activity by 1.8% annually in the second quarter. Finally, the primary sector suffered a sharp decline of 6% in relation to the second quarter of 2025.