Spain confirms 0.7% GDP growth in Q2 2026 as household spending offsets energy import surge

Quarterly growth and revised annual pace

The National Statistics Institute (INE) confirmed on 25 September 2026 that Spain's gross domestic product grew by 0.7% in the second quarter of 2026. This quarterly figure represents an acceleration of one tenth of a percentage point compared with the 0.6% expansion recorded in the first three months of the year. On an annual basis, the economy expanded by 2.6%, matching the revised rate from the first quarter but settling one tenth lower than the preliminary estimate issued in July. The revision establishes a continuous run of 24 consecutive quarters of positive quarter-on-quarter growth and 21 quarters of year-on-year increases. Spain's annual rate of 2.6% outpaced the European Union average of 1.5% for the same quarter, while regional figures compiled by Nastat showed Navarre recording 2.0% growth.

Spain2.6%

Navarre2%

EU-271.5%

Spain

2.6 %

Navarre

2 %

EU-27

1.5 %

Data from the article text

Domestic consumption and capital investment

Domestic demand served as the primary growth engine between April and June, contributing 1.1 percentage points to quarterly growth and 3.5 points to the annual total. Household consumption rose by 1.2% quarter-on-quarter, an increase of 0.9 percentage points over the first quarter rate, and climbed 3.5% year-on-year. Public administration spending maintained an expansion of 0.5% during the quarter and 2.6% year-on-year. Productive investment recorded solid dynamism as gross fixed capital formation expanded by 1.4% quarter-on-quarter, supported by a 3.0% rise in intellectual property products and a 1.0% expansion in the construction sector. The Ministry of Economy credited the steady performance of household spending to labor market conditions and the flow of European recovery funds into the economy.

“In year-on-year terms, our country's GDP growth remains solid at 2.6% between April and June, with household consumption accelerating to 3.5%, five tenths more than in the first quarter.”

Foreign trade and the energy import bill

External demand subtracted 0.5 percentage points from quarterly GDP and 0.9 points from the annual figure as import volumes outpaced exports. Total imports rose by 4.3% year-on-year, with imports of goods and services advancing 2.6% from the previous quarter. The surge in foreign purchases was heavily concentrated in energy products, which contributed 4.3 percentage points to total import growth in April, 8.3 points in May, and 4.5 points in June. The import bill for petroleum and derivatives reached 15.54 billion euros during the second quarter alone, representing a 24.4% increase over the first six months of the year. Purchases of crude oil grew by 97.1% year-on-year in May and 59.5% in June following Middle Eastern supply frictions around the Strait of Hormuz.

2026-044.3

2026-058.3

2026-064.5

2026-04

4.3 pp

2026-05

8.3 pp

2026-06

4.5 pp

Data from the article text

Inflationary pressures and economic outlook

Consumer price inflation rose to 4.3% in August, marking its highest level since February 2023 and damping household purchasing power. The Ministry of Economy noted that accumulated growth for 2026 reached 2.2% by the close of June, keeping the official annual target of 2.6% within reach. International institutions have offered more conservative assessments, with the OECD projecting inflation near 4.0% by year-end and forecasting Spanish GDP growth to decelerate to 1.8% in 2027. At the regional level, Navarre recorded 0.8% employment growth in the second quarter, with market services expanding by 3.4% while regional industrial activity contracted by 0.5%.