Spain's Economy Grows by 3.2% in 2024 Driven by Household Consumption
The latest figures confirm a steady recovery in Spain's economy, with significant contributions from household spending and public investment.
Madrid, 26 March 2025 – Spain's economy registered a growth of 3.2% in 2024, following a 0.8% rebound in the fourth quarter, as confirmed by the National Statistics Institute (INE).
This marks an increase from the 2.7% growth recorded in 2023, representing the fourth consecutive year of economic expansion since the impact of the COVID-19 pandemic in 2020. Notably, Spain contributed approximately half of the total growth in the Eurozone, which continues to face sluggish economic conditions.
The primary driver behind this GDP increase is household consumption, which accounted for 1.5% of the total growth figure.
In the last quarter, household consumption rose by 1%, consistent with trends observed in earlier periods.
This growth is attributed to robust job creation, with nearly half a million new jobs added in 2024, alongside an increase in the purchasing power of households.
The Bank of Spain has indicated a shift in consumption patterns towards more durable goods.
Public administration spending added eight-tenths of a percentage point to the growth; however, there is a noticeable decline in its contribution.
Where it previously served as a crucial growth engine in 2022 and 2023, its influence is waning as tighter budgetary controls limit expenditures.
Investment levels show improvement though remain less than ideal.
Senior economist María Jesús Fernández from Funcas described investment as a 'pending assignment', contributing six-tenths to growth in 2024. While there was a notable rise in the fourth quarter, driven primarily by strong construction data, overall investment levels remain below those seen in 2019, prior to the pandemic.
Economists caution that this recent uptick in investment may be volatile, advising caution before asserting a definitive trend shift.
In response to these figures, Minister of Economy, Trade and Business Carlos Cuerpo highlighted Spain's leadership in Eurozone growth for another year.
He stated that the data illustrate Spain's balanced, sustainable, and robust economic growth capable of enhancing employment quality and household purchasing power.
He emphasized that domestic demand, along with consumption and investment, underpins this growth trajectory, noting an acceleration in investment towards the end of the year.
This marks an increase from the 2.7% growth recorded in 2023, representing the fourth consecutive year of economic expansion since the impact of the COVID-19 pandemic in 2020. Notably, Spain contributed approximately half of the total growth in the Eurozone, which continues to face sluggish economic conditions.
The primary driver behind this GDP increase is household consumption, which accounted for 1.5% of the total growth figure.
In the last quarter, household consumption rose by 1%, consistent with trends observed in earlier periods.
This growth is attributed to robust job creation, with nearly half a million new jobs added in 2024, alongside an increase in the purchasing power of households.
The Bank of Spain has indicated a shift in consumption patterns towards more durable goods.
Public administration spending added eight-tenths of a percentage point to the growth; however, there is a noticeable decline in its contribution.
Where it previously served as a crucial growth engine in 2022 and 2023, its influence is waning as tighter budgetary controls limit expenditures.
Investment levels show improvement though remain less than ideal.
Senior economist María Jesús Fernández from Funcas described investment as a 'pending assignment', contributing six-tenths to growth in 2024. While there was a notable rise in the fourth quarter, driven primarily by strong construction data, overall investment levels remain below those seen in 2019, prior to the pandemic.
Economists caution that this recent uptick in investment may be volatile, advising caution before asserting a definitive trend shift.
In response to these figures, Minister of Economy, Trade and Business Carlos Cuerpo highlighted Spain's leadership in Eurozone growth for another year.
He stated that the data illustrate Spain's balanced, sustainable, and robust economic growth capable of enhancing employment quality and household purchasing power.
He emphasized that domestic demand, along with consumption and investment, underpins this growth trajectory, noting an acceleration in investment towards the end of the year.
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