Spain’s economy stays strong despite export slowdown

The sharpest dent came from Spain’s export sector, which recorded a 4.3% drop — the steepest fall since the pandemic. Spanish exports became less competitive overseas due to global uncertainty, a weakening euro and slow growth in Germany and France. Even the once booming tourism and industry sectors felt the strain. The country’s GDP fell by 0.6%.

Demand for domestic goods and services is on the rise

Even though exports were down, Spanish consumers continued to spend. Private consumption increased by 1.4% as households spent more on local travel, hospitality and culture. The pattern highlights a wider shift: Spain is now being fueled by its own people.

Businesses are also optimistic. The investment in capital goods increased by 3.2%. Many firms upgraded technology and machinery to increase productivity. These figures show that Spanish companies continue to bet on the future despite international headwinds.

Confidence is boosted by a strong job market

The employment rate remains the cornerstone for the economic resilience of the country. The number of jobs in the hospitality, healthcare and IT sectors continued to grow, resulting in an increase of 0.8% for overall employment. With unemployment edging down, consumer confidence has stayed high — an essential factor in maintaining domestic momentum.

Construction in tourist zones remains vital but slows down

Construction is the only weak point on the domestic front. Residential construction declined slightly due to higher interest rates and stricter regulations. However, activity in coastal and tourist regions continues to be a key source of local jobs.

Spain is still outpacing many Eurozone counterparts

Economists warn of a possible further slowdown in growth during the fourth quarter, as geopolitical tensions, inflation and high borrowing costs weigh on the European economy. Yet Spain remains one of the Eurozone’s stronger performers — a country now less dependent on exports and more balanced in its sources of growth.

Economic resilience defines Spain’s recovery

Spain’s economy continues to thrive despite external pressures. Its combination of job creation, consumer confidence, and business investment is a powerful mix. As the nation adapts to weaker export demand, its ability to rely on domestic strength shows a maturity in recovery — one that could help it weather whatever global storms lie ahead.

Source: elEconomista.es