Most recent posts from Spain

Activity grew by 0.6% QoQ in Q1 2026, one-tenth of a percentage point less than forecast, and with a less favorable composition than expected: investment and goods exports surprised on the downside. The advance was driven by hourly productivity, despite the drop in hours worked.

The debate over Europe lagging behind the US economy reveals that improvements in per capita income, based on current purchasing power parities, coexist with a lower capacity to purchase goods and services in the United States, which is inconsistent with full convergence.

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 trade agreement between the EU and Mercosur opens up opportunities for industry and services, although questions remain regarding its impact on certain agricultural and livestock segments, as well as Europe’s ability to manage the trade tensions arising from openness.

The Spanish economy is expected to maintain solid growth above 2% in 2026–2027, supported by employment, private consumption, services exports, and the housing sector. However, a weaker external environment, inflation, higher interest rates, and structural challenges will constrain part of its growth potential.

This study analyses the evolution of revenues, expenditures, budget balance, and debt of Spain’s autonomous communities from 2003 to 2025. It adjusts for the impact of atypical factors such as the pandemic in order to show the underlying deficit and the true financial situation.

Spain’s labour market remains dynamic, supported by the foreign population, which helps offset demographic ageing. Immigration is key to sustaining employment, though integration faces temporary employment and productivity challenges. The regularisation process is expected to have a limited macroeconomic impact.