Spain’s GDP Will Grow by 3.2% in 2024 Thanks to Domestic Demand and the Foreign Sector

Spain’s GDP grew by 3.2% in 2024, five-tenths more than in 2023, according to the GDP advance data published this Wednesday by the INE. Specifically, growth in the fourth quarter remained at 0.8% , highlighting the positive evolution of private consumption, with an increase of 1% and the significant acceleration of investment, with an increase of 2.8%, the highest in the last three years.

“Spain continues to lead growth in the Eurozone, with GDP growth four times higher than that of the Eurozone. The growth of the Spanish economy remains balanced, with a positive contribution from domestic and external demand,” said sources from the Ministry of Economy.

AIReF already raised the Spain’s GDP growth forecast for 2024 to 3.1% and the one forecast for 2025 to 2.5%

Growth in the last year has been driven mainly by domestic demand, with a contribution of 2.8 points to Spain’s GDP growth , more than one point higher than the previous year, and the good performance of the foreign sector, which contributed four-tenths to annual growth.

Employees, for their part, continue to regain purchasing power, with an increase in remuneration per employee of around 5% year-on-year in recent quarters. Furthermore, in a context of dynamic job creation and an increase in the number of hours worked, which increased by 2.8% year-on-year, the year-on-year improvement in hourly productivity is maintained, growing by 0.7% .

“The data we have learned today reflect the strength and balanced growth of the Spanish economy, which is being corroborated day after day by the main national and international organisations,” added sources from the same ministry.

Two weeks ago, the Independent Authority for Fiscal Responsibility (AIReF) already raised the Spain’s GDP growth forecast for 2024 to 3.1% and the one forecast for 2025 to 2.5%.

As the agency itself explained in a statement at the time, in these macroeconomic forecasts for the Spain’s GDP, the AIReF incorporated the latest available information, including the latest data from the Quarterly National Accounts (CNTR) published last December 2024. This update already represented an upward revision of GDP growth of two-tenths in both 2024 and 2025.

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First published in EL INDEPENDIENTE. A third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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