Eurozone News
LAST UPDATE: June 25, 2025
Spain’s first quarter GDP growth confirmed at 0.6% – final data
Spain’s economy expanded 0.6% in Q1 2025 from the previous quarter and 2.8% year‑on‑year. The Bank of Spain lowered its full‑year growth forecast to 2.4% from 2.7%, still above the eurozone average. Trade tensions were flagged as a key downside risk.
Insight
Despite slowing momentum, Spain’s growth remains robust relative to peers, but persistent global trade uncertainties are weighing on the outlook.
Spain expects no repercussions from not meeting NATO 5% spending target
Spain’s Finance Minister expressed that failing to reach the new NATO defense spending target (5% of GDP) by 2035 should not incur penalties, as long as the country demonstrates a credible defense roadmap.
Insight
This signals Spain’s attempt to balance fiscal constraints with alliance commitments, highlighting a diplomatic push to gain NATO flexibility on spending benchmarks.
