Perhaps surprisingly, Spain‘s economy is outperforming most other economies of the European Union. This year, GDP growth in Spain is projected to be around 2.6%, after last year’s growth rate of 3.5%. The investment bank Goldman Sachs says the Spanish economy should continue to outperform the other countries of Europe in 2026 and 2027. The growth is being driven by Spain’s services sector, especially tourism. Spain is also experiencing growth in finance, real estate, and telecommunications. These subsectors add more value than tourism. Wages are higher. Productivity is higher, but still low.

Beneath the surface, however, the picture is less bright.