Most recent posts from Galicia

Tourism spending in Spain is driven by foreign demand, which grew 8.8% year-on-year between May and August 2026. This dynamism offset the slowdown in domestic tourism, where spending increased by only 2.5%. Total spending grew by 5.7%, exceeding the pace between January and April 2026.

The analysis of regional data in Spain since 2000 reveals a growing divergence in productivity per worker. Regions with the highest demographic and employment growth experience an increase in total GDP but slower growth in GDP per capita, which hinders economic convergence.

Total tourism spending in Spain grew by 5.7% year-on-year in the second four-month period of 2026, driven by foreign spending (+8.8%), which accelerated due to geopolitical tensions and events like the August solar eclipse. In contrast, domestic tourism moderated, with a growth of 2.5%.

The Recovery Plan has injected significant funds and appears to be having a certain redistributive impact across regions. However, it faces risks of under-execution, and its completion may reduce investment, alongside persistent doubts regarding its impact on productivity.

The Spanish economy will maintain growth of above 2% in 2026–2027, supported by consumption, services and construction, although the deterioration in the international environment is widening regional differences.

The Spanish economy is expected to grow by around 2.4% annually in 2026 and 2027, although with a heterogeneous regional landscape. Growth will be led by tourism- and service-oriented areas this year, while industrial regions could recover in 2027 thanks to stronger European demand.

Between 2025 and 2027, regional growth will increasingly rely on domestic demand. In 2025, service-oriented regions stand out; in 2026, consumption and investment will gain prominence, and in 2027, industry and exports in the northern regions will become more relevant.