Spain’s real estate market started to slow down by mid-2022 with the change in monetary policy. For the time being, and despite the fact that the ECB has already raised its benchmark interest rates by 4 bp, the pace of this slowdown is proving to be gentler than anticipated, leading us to improve our forecasts for the sector in 2023. However, looking ahead to the coming quarters, we still expect a marked dip in the number of sales from the high figures recorded in 2022 as well as a slowdown in house price growth, especially in 2024, within the context of higher interest rates for longer. Nevertheless, there are several factors that will continue to support the sector and make a sharp correction such as the one seen in 2008-2013 unlikely, including a resilient labour market and significant inflows of immigrants.
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The tourism industry is no stranger to inflationary shock. Tourism-related prices are growing strongly and, specifically, the hotel sector is posting price rises well above the historical average. As is often the case, there is no single reason for this inflation in tourism but rather a compendium of changes in both supply and demand that have resulted in tourists having to pay much more than before the pandemic. In this article we look at the factors that lie behind this episode.
Spain’s manufacturing has been relatively successful in overcoming the impact of the various exogenous shocks that have shaken the European economic scenario in recent years.
The pandemic has highlighted the strategic nature of the agrifood industry as an essential activity to supply the population with food. The sector has therefore been one of the least affected by the crisis: the primary sector's relative share of the total economy increased and the agrifood industry posted a much smaller decline than manufacturing industry as a whole in Q2 2020. Labour market trends have also been relatively favourable, with relatively few job losses and a smaller proportion of workers affected by furlough measures.
This year and the next, the Spanish economy will enjoy strong expansionary momentum, supported by robust domestic demand and competitive advantages over its main European partners. Despite a challenging global environment, we forecast GDP growth of 2.9% in 2025 and 2.1% in 2026, supported by, among other factors, improved financial conditions supporting continued growth in private consumption and investment, population growth and relatively competitive energy costs. The sectoral analysis also reveals a broad-based expansionary cycle, which ranges from the best-performing sectors such as construction and pharmaceuticals to those that will grow at a more moderate pace, e.g. textiles and motor vehicles.
The pharmaceutical industry is a key and strategic sector for Spain’s economy, as was clearly demonstrated by the pandemic. In the past 25 years, the sector has become hugely significant and an important driver of Spanish exports and private R&D investment. Nevertheless, its production capacity still has room for improvement. The future of Spanish industry should be more closely linked to the pharmaceutical sector with a commitment to promote its growth, not only for strategic purposes but also for purely economic reasons, since it is an extremely competitive industry with a great capacity to generate good quality jobs that would help to modernise Spain’s economy.
Despite the expected reduction in the deficit to around 5.0% of GDP in 2022, the Treasury’s funding needs will remain high. This leads to the question of whether it could experience difficulties in capturing this funding now that the ECB has announced that it will be reducing its purchases of public debt.
How has the demand for technological goods in Spain evolved? We analyse what has happened according to different sociodemographic segments through the use of duly anonymised internal CaixaBank data.
The start of 2025 has brought a change in the focus of the financial markets, which was consolidated in February. Investors have shifted their attention away from the central banks, which were the main driver of the markets in 2024, towards an environment of high geopolitical risk, with the «Trump effect» as a key catalyst.
After using our consumption indicator to analyse the data on expenditure at petrol stations paid for with CaixaBank customer bank cards, we once again found that not all consumers reacted equally to the rise in fuel prices.
The indicators that have been published during the opening months of the year paint a picture of a buoyant Spanish economy in Q1 2025, albeit with a slightly less vigorous growth rate than in the previous quarter.
In his first six weeks in the White House, President Trump has succeeded in disrupting the world order repeatedly. On the trade policy front, uncertainty will cloud the economic outlook in the short and medium term, and the risk of protectionist escalation is high.
We summarise the current situation and future outlook for the Spanish tourism sector, as set out in the Tourism Sector Report S1 2023, in this preview from the September edition of the CaixaBank Research Monthly Report.
The Spanish economy is growing at a good pace – more so than expected – and this leads us here at CaixaBank Research to revise our growth forecasts for 2025 upwards from 2.3% to 2.5%. Despite the good news, the focus is not on the improvement in the forecasts, but rather on the uncertainty that surrounds them.