Spain | GDP grew 0.6% q/q in 1Q26, with weaker support from investment and trade

Summary

Economic activity increased by 0.6% q/q in 1Q26, one-tenth below expectations, and with a less favorable composition than anticipated: investment and goods exports surprised on the downside. Growth was driven by productivity per hour, despite a decline in hours worked.

Key points

• Key points:
• GDP growth slowed in 1Q26 slightly more than expected.
• Statistical revisions introduce a slight downward bias in BBVA Research’s 2026 outlook.
• Domestic demand continues to support growth, although with a smaller contribution than in the previous quarter.
• Consumption remains resilient, investment slows sharply, goods trade declines, and services exports continue to grow.
• More people are employed, but fewer hours are worked, with mixed signals on productivity.

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