FX.co ★ Spain Q1 GDP Growth Stronger than Expected

Spain’s GDP expanded by 0.6% in the first quarter of 2026, exceeding market expectations of 0.5%, though slightly below the 0.7% recorded in the previous quarter. Domestic demand remained the key growth engine, contributing 0.4 percentage points, while external demand added 0.2 percentage points. Household consumption rose by 0.6%, and government spending increased by 0.2%. Investment remained subdued, with gross fixed capital formation inching up by just 0.1%.

On the external front, exports fell by 0.5%, marking a notable deceleration from the previous quarter, while imports declined more sharply, by 1.2%. From the supply side, all major sectors made positive contributions. Industrial output grew by 0.4%, with manufacturing activity strengthening to a 0.5% increase. Construction posted only marginal growth of 0.1%, indicating a significant loss of momentum. The services sector remained robust, albeit slightly softer, with growth of 0.7%. Meanwhile, primary sectors rebounded strongly, rising by 3.3%. On a year-on-year basis, GDP grew by 2.7%, a slight improvement on the previous quarter.