Spain fourth-quarter GDP growth rate confirmed at 0.8%

The Spanish economy grew by 0.8% quarter-on-quarter in the final three months of 2024, in line with preliminary estimates and matching the growth rate seen in Q3.

Spain fourth-quarter GDP growth rate confirmed at 0.8%

Domestic demand was a key driver, contributing 1.2 percentage points to the overall expansion, while external demand subtracted 0.4 percentage points. Household consumption rose by 1%, reflecting steady consumer confidence, while public spending also increased by 0.3%, supporting overall economic activity. Investment saw a strong uptick, growing by 2.9%, indicating a solid business environment and confidence in Spain's economic prospects. In terms of trade, exports grew marginally by 0.1%, while imports rose by 1.4%, reflecting a higher demand for foreign goods, possibly driven by consumer and business needs. Across the broader economy, all major sectors experienced positive growth, with the exception of primary industries. The industrial sector grew by 0.3%, with manufacturing showing notable strength, accelerating to a 0.5% increase. The construction sector was a standout performer, expanding by 2.7%, reflecting continued investment in infrastructure and real estate. Services maintained a stable 1.0% growth, driven by strong demand in sectors like tourism, finance, and healthcare.

Primary industries contract

Primary industries, however, contracted by 0.7% after a 1.4% growth in the previous quarter, reflecting the challenges faced by agriculture and extraction industries, which have been impacted by adverse weather conditions and global commodity price fluctuations. On a yearly basis, Spain's GDP grew by 3.4%, slightly below earlier estimates of 3.5%. While this was a marginal miss, the growth rate still highlights Spain's strong economic performance in a year of global uncertainty.

Full-year figures

For the full year 2024, Spain's economy expanded by 3.2%, outperforming many of its Eurozone peers, indicating resilience in the face of external challenges such as inflationary pressures and geopolitical tensions. The country's robust growth, particularly in investment and construction, showcases its continued economic recovery, though challenges remain in certain sectors. Moving forward, the outlook for 2025 will depend on how effectively Spain navigates ongoing global risks, including supply chain disruptions and potential shifts in external demand.