MADRID, July 29 (Xinhua) -- Spain's economy grew by 0.7 percent in the second quarter (Q2) of 2025, highlighting its continued resilience despite global trade uncertainty driven by the U.S.-led tariff war.
The growth represents a slight acceleration from the 0.6 percent recorded in the first quarter and brings annual GDP growth to 2.8 percent for the 12 months ending in June, according to data released Tuesday by the National Statistics Institute (INE). This cements Spain's position as the fastest-growing major economy in the eurozone.
Domestic demand remained the primary engine of growth, rising 0.9 percent in the quarter. Household spending increased by 0.8 percent, supported by a robust labor market. INE figures published last week show unemployment fell to 10.29 percent, its lowest level since 2008, with a record 22.27 million people now employed.
Investment also played a strong role, climbing 2.1 percent in Q2, as Spain continues to attract international capital thanks to its economic stability.
External demand, however, slightly dragged on performance, subtracting 0.1 percent from GDP in Q2 and 0.6 percent over the past year. Still, Spain is considered relatively shielded from the new EU-U.S. tariff agreement announced over the weekend.
Prime Minister Pedro Sanchez expressed cautious support for the deal on Monday, saying he backed it but was "not enthusiastic." ■