Spain economy at a glance

Latest figures for Spain: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open Spain on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	4.9%	October 2026	5.0% September 2026
Core inflation (excluding food and energy)	3.5%	October 2026	3.5% September 2026
Real GDP growth (year on year)	2.7%	Q3 2026	2.6% Q2 2026
Policy rate (European Central Bank)	2.50%	November 2026	2.50% October 2026
Unemployment rate	10.3%	September 2026	10.2% August 2026
10-year government bond yield	4.07%	October 2026	3.93% September 2026
Manufacturing PMI (HCOB / S&P Global Spain Manufacturing PMI)	52.2	October 2026	51.0 September 2026
Retail sales (year on year)	−1.5%	September 2026	−0.6% August 2026
Industrial production (year on year)	1.2%	August 2026	2.7% July 2026
Wages (year on year)	4.0%	Q2 2026
House prices (year on year)	12.1%	Q2 2026	12.8% Q1 2026
Stock market (IBEX 35)	19,486	November 2026	+19.0% over 12 months

Questions and answers

What is the inflation rate in Spain?

Spain's annual inflation rate was 4.9% in October 2026, down from 5.0% in September 2026.

What is the interest rate in Spain?

The European Central Bank deposit facility rate is 2.50% (as of November 2026). The next rate decision is due on 17 December 2026.

How fast is Spain's economy growing?

Spain's real GDP grew 2.7% year on year in Q3 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 2.5% in 2026 and 1.8% in 2027.

What is the unemployment rate in Spain?

Spain's unemployment rate was 10.3% in September 2026, up from 10.2% in August 2026.

What is Spain's 10-year government bond yield?

Spain's 10-year government bond yield averaged 4.07% in October 2026.

How much government debt does Spain have?

Spain's government debt is about 101.4% of GDP (latest annual figure), with a budget deficit of 2.5% of GDP.

What is Spain's credit rating?

Spain's sovereign credit ratings: S&P A+, Moody's A3, Fitch A.

What is the VAT rate in Spain?

Spain's standard VAT rate is 21% (2026 rules).

What is the corporate tax rate in Spain?

Spain's corporate income tax rate is 25.0% (2026 rules).

Who leads Spain?

Spain is led by Prime Minister Pedro Sanchez (PSOE), leading a minority left-wing coalition; King Felipe VI (head of state). Next election: Snap general election on 29 November 2026 (Cortes dissolved 6 October 2026; new parliament convenes 23 December).

Outlook

On 9 October the Banco de Espana raised its 2026 growth forecast to 2.6% and its 2027 forecast to 2.2%, broadly in line with the IMF's roughly 2.5% for 2026, citing strong consumption, tourism and labour-force growth from immigration. It also raised inflation forecasts to 3.9% for 2026 and 3.7% for 2027 because of the Middle East energy shock, and expects unemployment to fall to about 10% and the 2026 deficit to widen to 2.6% of GDP. The main risks are a prolonged energy shock, real wages that keep lagging prices, further ECB hikes, and policy uncertainty around the 29 November election and the formation of the next government.

Why Spain matters for the world economy

Spain has been the fastest-growing large euro economy, so its demand supports exports from France, Germany, Portugal and Italy, which take over 40% of its goods exports, and it holds up aggregate euro-area GDP. It is a major car-assembly and food-export hub within EU supply chains, and a top tourism destination that absorbs a large share of northern European household spending. Its large banks have heavy exposure to Latin America, especially Mexico and Brazil, which links Spanish financial conditions to those markets. The snap election on 29 November adds a political risk premium to Spanish assets, and inflation of about 5% (HICP, September) erodes the cost advantage that has driven its export and tourism gains.

Politics

On 2 October 2026 Congress rejected two emergency housing decrees, with Junts, PP and Vox voting against, amid mass protests over rents. Sanchez then called a general election for 29 November, about eight months early, and the Cortes were dissolved on 6 October. Polls published on 9 October by El Pais and El Confidencial give PP and Vox a combined 198-200 seats, above the 176 needed for a majority, so a change to a right-wing government is the main scenario. The election also leaves fiscal planning, including how long energy-crisis support continues past December, on hold until a new government is formed.

System: Parliamentary constitutional monarchy.

Economy and taxes

GDP: US$1,906 billion
Population: 49.6 million
Government debt: 101.4% of GDP
Budget balance: −2.5% of GDP
Current account: 3.2% of GDP
Exports: 36.6% of GDP
Main exports: Motor vehicles and parts, food and agricultural products (fruit, vegetables, olive oil, pork), pharmaceuticals and chemicals, machinery, refined fuels; plus large tourism services exports
Top export markets: France (14.1%), Germany (10.0%), Portugal (8.7%), Italy (8.0%), United Kingdom (6.4%)
IMF growth forecast: 2.5% in 2026, 1.8% in 2027
IMF inflation forecast: 3.7% in 2026, 2.7% in 2027
Currency: EUR
Freelancer tax: A self-employed person earning the average wage (EUR 33,827 a year) pays about 29.7% of it in income tax and social contributions (2026 rules)
Top income tax rate: 54.0%
Gold reserves: 281.6 tonnes (September 2026)
Energy self-sufficiency: 23% (2024)

Recent news

3 November 2026 Transport minister resigns after a train crash near Toledo kills 69 The Local
Oscar Puente quit and withdrew as an election candidate after a Renfe train ran into a stationary Iryo train near Urda, south of Madrid, killing 69 people. It was Spain's second deadly rail crash in under a year, and it hits Sanchez as he trails in polls before the 29 November election.
30 October 2026 Spanish economy grows 0.6% in the third quarter on steady consumer spending INE
INE's advance estimate shows GDP rose 0.6% from the second quarter, a touch slower than the 0.7% before, and 2.7% from a year earlier. Household spending grew 0.6% and exports 1.3%, but investment barely moved, rising just 0.1%.
27 October 2026 Spanish unemployment rises to 10.18% in the third quarter INE
INE's labour force survey counted 95,900 more jobless people than in the second quarter, pushing the rate back above 10%, although employment still grew by 73,600 to 22.85 million and is 2.1% higher than a year earlier.
26 October 2026 Vox gains as polls still point to a right-wing majority in Spain's election The Local Spain
A month before the 29 November vote, most polls give PP and Vox together about 198-209 of 350 seats, but the PP is slipping slightly while Vox gains. The state-run CIS is the outlier, putting the Socialists ahead on 34%.
16 October 2026 Spanish inflation hits 5.0%, highest among the big euro economies Eurostat
Eurostat's final September data put Spain's HICP at 5.0%, up from 4.6% in August and 3.0% a year earlier, well above the 3.8% euro-area rate.
13 October 2026 IMF sees Spain leading large euro economies with 2.5% growth in 2026 Muenster Aktuell (IMF WEO)
Spain's growth forecast is about double the euro-area figure of 1.1% in the October WEO, though energy prices and conflict escalation remain downside risks.

Headlines and summaries are compiled daily from the linked reports with AI assistance.