The Spanish economy maintains growth despite the first effects of the war in Iran
Spanish GDP grows 0.6% between January and March and 2.7% compared to a year ago
BarcelonaThe Spanish economy maintained its growth in the first quarter of this year despite the first effects of the war in the Persian Gulf, with household consumption and business investment as drivers. Due to the international situation, foreign trade worsened its position.
Thus, the gross domestic product (GDP, the indicator that measures the size of an economy) of the State increased by 0.6% compared to the previous quarter, according to data released this Thursday by the National Statistics Institute (INE). This represents a reduction in the quarterly growth rate of two tenths compared to the one recorded in the last three months of 2025, but it continues to be clearly higher than that recorded by most countries in the European Union. If compared with the first quarter of a year ago, growth was 2.7%, one tenth more than the year-on-year rate of the fourth quarter of last year.
"The Spanish economy maintains its growth momentum at the start of this year marked by the war in Iran," declared the Vice President of the Government and Minister of Economy, Carlos Cuerpo, in a message to the media. Cuerpo described the GDP growth as "solid" and pointed out that "at this pace," Spain continues to be "a leader [in economic growth] among the main economies of the European Union."
By sectors, industry grew by 0.4% compared to the previous quarter (1.8% compared to a year ago) and within this, the manufacturing sector increased its quarterly growth by four tenths, to 0.5%. Construction increased activity by 0.1%, but compared to the first quarter of 2025, it registered an increase of 6.5%. Agriculture, on the other hand, decreased by 3.4% compared to a year ago despite growing by a notable 3.3% compared to the fourth quarter of last year.
For their part, services, which represent more than two-thirds of GDP, lost momentum in the first quarter, with a quarterly decrease in activity of 0.7%, a usual occurrence in the first quarter after a fourth quarter normally marked by increased consumption during Christmas. Despite this, services increased activity by 3.4% compared to a year earlier.
