The Spanish economy moderates its growth: advances 0.6 % in the first quarter dragged down by the exterior

The Spanish economy grew by 0.6% in the first quarter of the year, two tenths less than in the last stretch of 2025, according to data published by the Instituto Nacional de Estadística (INE). This slowdown is largely explained by the weakening of the external sector, in a context marked by instability in Oriente Medio and the volatility of energy prices.

Growth was mainly supported by domestic demand, which contributed 0.4 points to GDP, while external demand contributed 0.2 points despite the deterioration of foreign trade. Exports fell by 0.5% after having grown by 0.7% in the previous quarter, and imports fell by 1.2%, compared to the 1.2% increase previously recorded.

One of the key factors of the slowdown was investment, whose gross fixed capital formation moderated 1.7 points, to a growth of 0.4%. Especially significant was the slowdown in construction and housing, which went from growing 2.6% to barely 0.1% at the start of the year.

Household consumption also showed signs of cooling, with an advance of 0.6%, three tenths less than in the previous quarter, while public spending remained stable with a growth of 0.2%. Despite this, the Minister of Economy, Carlos Cuerpo, highlighted that the economy “maintains the pulse of growth” and stressed that year-on-year GDP reaches 2.7%, placing Spain among the most dynamic economies of the Unión Europea.

By sectors, agriculture led growth with a 3.3%, followed by services (0.7%) and industry (0.4%), while construction barely advanced a 0.1%. GDP at current prices reached a maximum of 437,308 million euros, with an increase of 2,186 million compared to the previous quarter. In the labor market, hours worked decreased by 0.3%, although full-time equivalent employment grew by 0.8%, reflecting a mixed behavior of the labor market.