According to the preliminary estimate released by the National Statistics Institute (INE), Spain’s Gross Domestic Product (GDP) increased by 0.6% in Q1 2026 compared to the previous quarter. This rate was two-tenths of a percentage point lower than that recorded in Q4 2025.
In Q1 2026, domestic demand contributed 0.4 percentage points to the quarter-on-quarter GDP growth, while external demand contributed 0.2 points.
Breakdown by Demand Aggregates
- Household final consumption expenditure: increased by 0.6%.
- Government expenditure: grew by 0.2%.
- Gross capital formation: recorded a variation of 0.1%.
- Exports of goods and services: showed a quarter-on-quarter variation of -0.5%, which is 1.2 points lower than in Q4 2025.
- Imports: recorded a variation of -1.2%, 2.4 points lower than the previous quarter.
Supply-Side Analysis
From the supply perspective, all major activity sectors showed positive rates in their added value:
- Industrial activity: increased by 0.4% quarter-on-quarter.
- Manufacturing industry: grew by 0.5% (four-tenths higher than the previous quarter).
- Construction: gross value added increased by 0.1%, a slowdown of 1.9 percentage points compared to the previous quarter.
- Services: growth slowed by two-tenths to 0.7%.
- Primary sectors: recorded a quarter-on-quarter variation of 3.3%, compared to a near-zero rate in the previous quarter.
In year-on-year terms, Spain’s GDP grew by 2.7% in Q1 2026 (compared to 2.6% in Q4 2025). During the quarter, domestic demand contributed 3.4 percentage points to year-on-year GDP growth, while external demand subtracted 0.7 percentage points.
Demand Aggregates
- Final Consumption Expenditure: Year-on-year growth slowed by one-tenth of a percentage point compared to the previous quarter, standing at 2.9%.
- Household Consumption: Grew at a rate of 3.2%, an acceleration of 0.1 percentage points.
- Government Expenditure: Recorded a growth rate of 2.0%, down 0.5 percentage points from the preceding quarter.
- Gross Capital Formation: Reported a variation of 5.8%, one-tenth higher than the previous quarter.
Foreign Trade
- Exports of Goods and Services: Showed a year-on-year growth rate of 0.9%, which was 2.8 points lower than in Q4 2025.
- Imports: Recorded a variation of 3.1%, a rate 3.5 points lower than that of the preceding quarter.
Supply Side Analysis
From a supply perspective, all major sectors showed positive year-on-year growth in value added, with the exception of primary activities:
- Industry: The Gross Value Added (GVA) of industrial branches grew by 1.8% (Manufacturing also grew by 1.8%).
- Construction: GVA increased by 6.5% year-on-year.
- Services: GVA rose by 3.4%.
- Primary Sector: In contrast, the GVA for primary branches decreased by 3.4%.
