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The Canary Islands maintain solid growth but face a slowdown due to tourism weakness. Consumption and employment are supporting economic activity, with challenges in housing, productivity, and energy.

In the third week of February, the recovery in spending across the affected Andalusian provinces consolidated following improved weather conditions and the reopening of the Madrid–Andalusia railway line. Consumption accelerated and, in many cases, outpaced growth in the rest of Spain.

Heavy rainfall and flooding, together with the continuation of the railway disruption between Madrid and Andalusia, led to a sharp deterioration in consumption in the affected Andalusian provinces during the first week of February.

After two weeks of railway disruption, consumption in the affected provinces shows a more generalized slowdown. Growth in domestic card spending moderates, while foreign card spending has already turned negative. The largest impact continues to be concentrated in bilateral flows between Madrid and the affected provinces.

The increase in total tourism spending (domestic and international) remained dynamic during the third quarter of 2025, reaching 6.5% year-over-year (6.4% in the previous period). The acceleration of domestic tourism offset the moderation in international tourism.

In 2026, the World Cup, the USMCA review, and ties with the U.S. will place Mexico under global scrutiny. Tourism will be the first test: the visitor experience will determine whether the impact is fleeting or structurally transformative.

The increase in total tourist spending with cards by Spaniards and foreigners slowed during the second four-month period of 2025, standing at 5.7% y/y (4.5 pp less than in the previous period), in a context of rising prices.