Spain | Bank credit to business sectors in 2025

Summary

Bank credit to firms returned to growth in 2025 after years of contraction, supported by lower interest rates, deleveraging, and a recovery in investment. The pace of expansion is moderate and uneven across sectors, with services and industry leading the improvement.

Key points

• Key points:
• Credit to economic activities turned positive in Q3 2024 and reached 1.6% year-on-year growth in Q2 2025, driven by declining interest rates, lower indebtedness, and the recovery of private investment.
• The services sector, which accounts for 73% of business credit, leads growth (2.0% y/y), supported by hospitality, real estate development, and other services, although declines persist in trade, transport, and financial intermediation.
• Industry (19% of business credit) exited negative growth at the beginning of 2025 and is expanding at 1.5% y/y, with strong momentum in chemicals, transport equipment, and energy, offset by contractions in extractive industries and traditional manufacturing branches.
• In 2026, credit is expected to grow in line with nominal economic activity, conditional on investment dynamics, reduced uncertainty, the availability of skilled labor, and a more flexible regulatory framework.

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