Spain’s GDP grew by 0.6% in the first quarter of 2026, more than market expectations of 0.5% and compared with 0.7% in the previous period. Domestic demand remained the main driver, contributing 0.4 pp to growth, while external demand added 0.2 pp. Household consumption rose by 0.6%, while public spending increased by 0.2%. Investment showed only modest momentum, with gross capital formation edging up by 0.1%. On the external side, exports declined by 0.5%, a notable slowdown from the previous quarter, while imports dropped more sharply by 1.2%. From the supply perspective, all major sectors posted positive contributions. Industrial activity grew by 0.4%, with manufacturing accelerating to a 0.5% increase. Construction expanded marginally by 0.1%, losing significant momentum. Services remained solid, though slightly weaker, at 0.7%. Meanwhile, primary sectors rebounded strongly, rising 3.3%. Year-on-year, GDP increased by 2.7%, slightly improving from the previous quarter.

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