The economy of Spain grew by 2.8% in 2025, exceeding government and eurozone forecasts.

Spain recorded a GDP growth of 2.8% in 2025, slightly below the forecasts of the Madrid Government, but more than twice the estimates for the eurozone. The Minister of Economy, Carlos Cuerpo, emphasized that Spain is the economic engine of Europe, benefiting from the post-Covid recovery and a record number of tourists.

Inflation decreased to 2.4% in January, which improves the purchasing power of citizens, despite the increase in rents. Additionally, unemployment fell below 10% in the fourth quarter of 2025, a first since 2008, although Spain still has the highest unemployment rate in the OECD.

The government announced a plan to regularize undocumented immigrants, contrary to European trends, and an increase in the minimum wage to 1,424.50 euros gross per month. The IMF and the Bank of Spain estimate a GDP growth of 2.3% and 2.2% for the current year, despite the lack of a new budget.