Spain’s gross domestic product expanded by zero point seven percent in the second quarter of twenty twenty-five, from the previous three-month period, up from a growth of zero point six percent. This acceleration in economic growth slightly exceeded expectations, further widening the gap with its euro zone peers, who continue to experience sluggish growth. Preliminary data from the National Statistics Institute revealed that analysts anticipated a growth of zero point six percent.

On an annual basis, Spain’s second-quarter economic output rose by two point eight percent, surpassing the expected growth of two point five percent. The INE attributed this rise mainly to significant activity in the services sector, driven by surges in retail trade, lodging, and transportation. Although construction and manufacturing areas also experienced growth, agriculture saw a contraction.

Furthermore, this economic growth coincided with a decrease in the unemployment rate, which fell to ten point twenty-nine percent in the second quarter, marking the lowest level since early two thousand and eight. Spain’s robust economic activity is largely supported by booming tourism, contrasting sharply with expectations of weak growth in France, Germany, Italy, and the euro zone overall.

Upcoming second-quarter data for these countries is expected to be released soon, with analysts predicting the euro zone’s GDP has remained flat. France and Italy are forecasted to achieve meagre growth of only zero point one percent, while Germany’s GDP may have contracted by zero point one percent. The Spanish government is optimistic and anticipates a total growth of two point six percent for this year.