Bloomberg reports that Spain’s economy expanded significantly in the first quarter of this year. In the first three months of 2025, the country's GDP rose 0.6% from the previous quarter. At the same time, inflation accelerated by only 2.2% year-on-year, slightly above the European Central Bank's target level of 2%, the agency says.
Last week, the International Monetary Fund raised its forecast for the Spanish economy for 2025. Yet, Monday's massive power outage could slow GDP growth in the second quarter by 0.5%, Bloomberg Economics warns. However, the agency says the decline could be partially offset as energy supply is restored.
Meanwhile, unemployment in Spain stands at 11.36%, a record low in over 15 years. This also highlights the economy’s health, Bloomberg adds.
Spanish Prime Minister Pedro Sanchez notes that now the country’s GDP growth and job creation pace stand out among other nations of the European Union.