Spain's economy grows 0.6% in third quarter, slowing a tenth but annual pace hits 2.7%

Growth slows a tenth in the third quarter

Spain's gross domestic product rose 0.6% in the third quarter of 2026, covering July to September, one tenth less than in the previous quarter. The figures come from an advance estimate of the quarterly national accounts, published on 30 October by the National Statistics Institute (INE). Domestic demand contributed five tenths of the quarterly growth, while the external sector added one tenth. Inflation and higher energy costs, which several reports link to the conflict in the Middle East, form the backdrop to the softer pace.

Household spending and investment lose pace

Household consumption grew 0.6% in the quarter, five tenths below the previous period, yet it remained the main engine of growth. Public spending accelerated to 0.9%, three tenths more and the highest reading in the past year, while spending by non-profit institutions serving households rose 0.6%, one tenth more. Investment slowed by three tenths, but the sources do not agree on its exact quarterly rate: most outlets report 0.6%, while La Razón and eldiario.es give 0.7%, with eldiario.es citing housing construction at 1%. Under either figure, investment posted its smallest rise since the second quarter of 2025.

Household consumption0.6%

Public spending0.9%

Exports of goods and services1.3%

Imports of goods and services1.1%

Household consumption

0.6 %

Public spending

0.9 %

Exports of goods and services

1.3 %

Imports of goods and services

1.1 %

Data from the article text

Exports, imports and the external sector

Exports of goods and services rose 1.3% from the previous quarter, two tenths more than in the April to June period. Imports grew 1.1%, down from 2.2% in the second quarter, a sharp slowdown that narrowed the drag from abroad. Together, these movements left the external sector with a positive contribution of one tenth to quarterly growth. Domestic demand therefore carried almost all of the expansion, as it has for most of the year.

Annual growth and the government forecast

Measured against the third quarter of 2025, GDP rose 2.7%, one tenth more than in the previous quarter. Domestic demand supplied 2.6 points of that rise, while the external sector contributed almost nothing. Nominal GDP grew 5.9% year on year and the GDP deflator rose 3.1%. Annual household consumption slowed four tenths to 3.1%, public spending eased to 2.5%, and investment rose 3.9%, its weakest annual reading in at least two years.

Q3 2026 actual2.7%

2026 government forecast2.6%

Q3 2026 actual

2.7 %

2026 government forecast

2.6 %

Data from the article text

The government expects growth of 2.6% for 2026, in line with the analyst consensus cited by EL PAÍS. According to the IMF, Spain is among the large developed economies expected to grow most this year. Labour force survey data (EPA) had already pointed to a slowdown, with unemployment back above 10%. For 2027, the economy is expected to slow further, although most analysts still see growth above 2%.