Publications

The Colombian economy accelerated in the second quarter, with GDP growth of 3.5% year-on-year, driven by domestic demand (+4.9%). This gap was covered by a 7.5% increase in imports, while exports fell. Public spending was a key, but temporary, driver.

Building on the analysis initiated in a previous study, the Working Paper describes and assesses the new elements of the Government’s proposal to reform the SFA contained in the draft agreement sent to the Autonomous Communities several weeks ago.

The geopolitical context has driven Spain to enter an expansionary cycle and reach the defense spending target of 2% of GDP in 2025. A structural change aimed at military modernization through major programs is observed, with a central role for the domestic industry and greater European cooperation.

The Plan has awarded €62.7 billion, 78% of the amount planned. Individuals and SMEs account for most beneficiaries; large and medium-sized firms for the amount awarded. Implementation is higher in lower-income regions. Two months before the deadline, the current implementation rate is not enough to complete the commitments.

Following the outbreak of the war in Ukraine, defense has become key in Europe. BBVA Research has developed a high-frequency indicator based on Council of Ministers agreements to track Spanish defense spending. Data shows a significant rise since 2022, reflecting a clear modernization of national defense capabilities.

Household savings in Spain are high but highly unequal. While high-income households save nearly 50%, precarious households show negative rates. This disparity limits the ability of vulnerable families to absorb economic shocks.

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.