A picture taken on Jan. 20, 2026 shows a view of Alcala street taken from the Four Seasons Hotel in central Madrid. (AFP)
Spain's economy grew 2.8 percent last year, fuelled by strong consumer demand, rising exports and a robust tourism sector, according to a preliminary estimate Friday by the national statistics institute (INE).
While down from a 3.5 percent GDP increase in 2024 and just below the government's forecast for growth of 2.9 percent, Spanish growth was more than twice the average expected in the entire eurozone.
"Right now, Spain is helping power Europe's growth," Economy Minister Carlos Cuerpo said in an interview with Spanish public television after the figure was announced.
Spain, the European Union's fourth-largest economy, has outperformed its peers since 2021, supported by low energy costs, domestic consumption and a rebound in tourism since the end of the Covid pandemic.
The country hosted 97 million foreign visitors last year, continuing a three-year streak of record-breaking arrivals.
Spain is also more insulated from global trade tensions than many of its eurozone peers.
Cuerpo told AFP in June that US tariffs would have a limited impact on Spain's growth since only around five percent of Spanish exports are US-bound.
Overall exports of goods and services rose 0.8 percent in the fourth quarter, after dipping in the previous quarter.
This helped gross domestic product (GDP) rise 0.8 percent in the fourth quarter from the previous quarter, when growth was 0.6 percent.
Cuerpo said "growth has been steadily accelerating" throughout last year, which "set us up well for 2026".
The Bank of Spain estimates the economy to expand by 2.2 percent this year.
Spain's unemployment rate fell to 9.93 percent in the fourth quarter of last year, the first time it dropped below 10 percent since the 2008 financial crisis.
And inflation slowed in January to 2.4 percent from 2.9 percent in December, according to a preliminary estimate from the statistics office also released Friday.
