Publications

Spain needs more housing, but investment in the sector is not taking off, largely because it is not profitable; even though margins have recovered, developers face years-long construction timelines, keeping assets (land) on their balance sheets without generating revenue.

The GDP growth forecast is revised upwards to 3.0% (+0.5 pp) in 2025 and 2.3% (+0.6 pp) in 2026. The improvement reflects resilience to rising tariffs, reduced tariff policy uncertainty, and a greater impact of NGEU funds.

GDP rose 2.1% y/y in Q2 2025, fueled by consumption, especially durable goods. Investment focused on machinery and civil works, but buildings weighed down growth. The 2025 forecast remains at 2.3%, with room for upside if positive trends strengthen.

The press article explains that a large portion of adults lack a solid plan for retirement, which leads them to rely on continued work, family support, or government assistance. Therefore, it highlights the need to plan for retirement income early, diversify income sources, and take advantage of investment instruments.

The Spanish economy is entering a new phase of expansion in which the drivers of recent growth are running out of steam. Replacing these with new ones will bring a sense of having already crossed this bridge. But neither the Spanish economy nor the bridge are the same as before.

Spain is facing increasing water stress as a result of climate change. Droughts are lasting longer, rainfalls are getting heavier, heatwaves are more frequent and wildfires are more destructive.

Global uncertainty, especially on geopolitical and commercial issues, has been creating a complex and atypical environment for Latin America in 2025. This has led to high market volatility, caution from monetary policy, and broader than normal ranges when forecasting economic variables.