The Spanish economy maintains a growth of 2.7% in the second quarter despite the war in Iran
Inflation rises to 3.5% in July, the highest figure in two years
BarcelonaThe Spanish economy maintains a growth of 2.7% in the second quarter despite the effects derived from the war in Iran. According to the first estimates published this Thursday by the National Statistics Institute (INE), this is a improvement identical to that of the first quarter of 2026, when the gross domestic product (GDP, the indicator that measures the size of an economy) registered an interannual increase of 2.7%.
In interquarterly terms, the Spanish economy registered an increase of 0.7% between April and June, one tenth more compared to the period between January and March. In this regard, household consumption is consolidated as one of the main engines of growth in the country, with a quarterly advance of 0.7% and an interannual improvement of 3.2%.
According to the first assessment issued by the Ministry of Economy, Commerce and Business of the Spanish government, Spain "maintains its growth momentum and continues to lead the major economies of the euro area [...] in a context still marked by the impact of the war in Iran". In this regard, the central executive believes that the data invite optimism and sees it as likely that the forecasts drawn up at the beginning of the year, which predicted a GDP improvement of 2.6% for the entire year, will be met.
Rising inflation
For its part, inflation during the month of July increased by three tenths compared to the June rate and reached 3.5%, the highest figure since May 2024. The increase is mainly explained by the rise in the price of fuels and electricity derived from the conflict in the Middle East and moves the State away from the 2% target pursued by the European Central Bank (ECB).
In turn, core inflation - which does not take into account energy and food - grew by one tenth and stands at 3%.
Given the instability and geopolitical tensions, the Spanish government secured the support of the Congress of Deputies last week to maintain some of the measures aimed at alleviating the effects of the war. The extension will last for three months and tax rebates will be progressively withdrawn.
According to data provided by the executive itself, the measures implemented last March have cushioned the price increase derived from the shocks of the conflict in the Middle East by more than 60%. Or, in other words, they have contributed to reducing inflation by an average of one point in recent months.
