Spanish Consumers Helped Economy Outpace Peers at End of 2024

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  • Mar 26, 2025

(Bloomberg) -- Household consumption drove Spain’s economic expansion at the end of last year, helping it outpace its euro-zone peers.

Consumer spending increased 1% in the fourth quarter while government outlays rose 0.3%, statistics agency INE said Wednesday, confirming the initial 0.8% growth reading for the period. GDP in the 20-nation euro area increased by just 0.2% during that time.

Spain has been the standout performer among Europe’s largest economies in recent years, underpinned by tourism and domestic demand. Central bank Governor Jose Luis Escriva this week described growth as “very robust.”

Even so, he warned — for Spain as well as the wider region — of “extreme uncertainty.” Europe faces the risk of tariffs from President Donald Trump’s administration and governments are also rearming to replace waning US defense support. While that initiative could boost investment, it could also stoke inflation in the short term.

The Bank of Spain sees GDP jumping 2.7% this year, though Prime Minister Pedro Sanchez has failed to capitalize on such stellar numbers and continues to grapple with a fragmented parliament that hasn’t approved a budget since 2023. On Wednesday, he’ll address lawmakers on his defense-spending plans.

--With assistance from Joel Rinneby, Harumi Ichikura, Barbara Sladkowska and Rodrigo Orihuela.