The Research Department at MytripleA has produced an exhaustive macroeconomic report on the Spanish economy. Below we summarize the main conclusions of the report. You can download the full report and the graphs in both English and Spanish.
For years, Spain was grouped under the acronym “PIGS,” a label that associated it with structurally weak economies in the Eurozone. However, the most recent data shows that those days are over. Spain is now positioning itself as one of the most robust economies in Europe. Let’s take a look at the main indicators supporting this transformation.
1. Improved Credit Rating and Reduction in Public Debt
Major rating agencies hold a positive outlook on Spanish sovereign debt. With ratings of A (S&P), A- (Fitch), and Baa1 (Moody’s), Spain is solidly within investment grade. As of December 2024, public debt stood at 101.8% of GDP, a significant drop from the 124.2% recorded during the pandemic.
2. Economic Growth Above the European Average
In 2024, Spain’s GDP grew more than that of countries like Germany, France, or Italy. Projections for 2025 remain optimistic, with an estimated growth of 2.38%, well above the Eurozone average of 1.23%. This momentum is driven by domestic consumption, tourism, and investment linked to digitalization and the green transition.
3. Unemployment Drops, Though Challenges Remain
Although the unemployment rate remains high, it has decreased significantly. In the last quarter of 2024, it stood at 10.61%. The labor market has evolved positively, spurred by structural reforms and job creation in sectors such as technology and services.
4. Strong Private Consumption
After declines due to the financial crisis and the pandemic, private consumption has strongly rebounded. It is expected to grow by 2.2% in 2025, compared to the European average of 1.2%. This upswing reflects the recovery of household purchasing power and consumer confidence.
5. A More Balanced Trade Balance
Despite a historical trade deficit, the current account has benefited from a surplus in services—especially tourism. In recent years, import coverage has exceeded 90%, supported by stabilized energy prices.
6. Euribor Drop and Improved Access to Credit
The Euribor has dropped sharply since mid-2024, easing financial burdens on businesses and households. Bank lending has increased, and the non-performing loan rate has fallen to 3.32%, the lowest level since 2008.
7. Fewer Bankruptcy Proceedings
After a surge in 2022 and early 2024, bankruptcy filings have decreased once again. This signals greater business stability and an improved ability to adapt to economic conditions.
8. Strong Stock Market Performance
The IBEX 35 has outperformed the Euro Stoxx 50 since May 2024, driven by dividend yields and a reduced perception of risk. Although it remains more dependent on sectors like banking and energy, its overall performance has been remarkable.