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Spain's Economic Landscape in 2025

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Spain's economy in 2025 presents a mixed picture of growth opportunities and challenges, reflecting the complex nature of global markets and domestic factors.


Economic Growth


GDP growth projected at 2.3% for 2025, down from 3% in 2024 but still outpacing many European counterparts.


By end of 2025, Spanish GDP expected to be 8.9% above pre-pandemic levels, compared to European average of 5.7%


Spain: Structure of exports by sector and destination, created by La Caixa

Sector-Specific Outlook


Manufacturing


Manufacturing PMI increased to 53.3 in December 2024, indicating expansion.


Sector expected to grow by 2.3% in 2025, aligning with overall economic growth.


Improved competitiveness due to lower energy costs compared to European competitors.


Energy


Renewable energies to generate 56% of Spain's electricity mix in 2024.


Wind power leads with 23% share, followed by nuclear (19%) and solar photovoltaic (17%).


Automotive


Faces challenges in transitioning to electric vehicles amid international competition.


Growth expected to align with overall economic rate.


Crucial need for adaptation to high-value-added position in electric vehicle production.


Tourism and Services


Tourism sector projected to grow by 3.4% in 2025.


Strong performance in both tourism and non-tourism services contributing to external sector growth.


Technology and Innovation


Information and communication technologies sector projected to grow by 4.6% in 2025.


Over €100 billion in investments projected for deep science startup ecosystem.



Classification of economic sectors accoring to the growth rate forecast by Caixabank Research


Key Economic Indicators


Employment expected to exceed 22 million.


Creation of 730,000 net new jobs forecasted over 2024-2025.


Inflation projected to decrease, reaching just below 2% in 2025.


Challenges


Public deficit expected to remain above 3% in 2025, requiring approximately €8 billion in budget savings.


Core inflation, particularly in services, anticipated to be more persistent.


Some industrial branches, like textiles and paper, may face slower growth due to cost pressures and international competition.


In conclusion, while Spain's economy shows resilience and growth potential in 2025, businesses should be prepared for sector-specific challenges and opportunities, particularly in manufacturing, renewable energy, and technology sectors.


Article Validity, creation and authority.


This article was created using a combination of three AI programs: Perplexity, Gemini, and ChatGPT. The content was developed based on information provided by Rajen at InAudio, tailored to the profile of a company currently enrolled in Business English classes with InAudio. It was refined and supplemented with relevant statistics and insights to address the company's current and future needs.


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