Spain’s economy grew by 3.3% in the third quarter of 2024, driven by record-breaking tourism spending and a surge in household consumption.
This growth rate, confirmed by the National Institute of Statistics (INE), reflects a steady expansion, matching the Bank of Spain’s forecast of 3.1% GDP growth for the full year.
Tourism emerged as a cornerstone of Spain’s economic success, recording its most lucrative summer ever. Spending by international visitors soared by 13.5% compared to the same period in 2023, boosting the foreign sector’s overall performance. Exports rose by 4.3% year-on-year, further strengthening the country’s economic standing within the European Union.
Domestic factors also contributed to this upswing. Household consumption increased by 3% in the summer quarter, accelerating by two-tenths compared to the previous period. Public sector spending saw even sharper growth, climbing by 5.1%, one percentage point higher than in the second quarter.
Despite these promising indicators, investment experienced a slight deceleration. Year-on-year investment growth slowed to 0.7%, down seven-tenths from the previous quarter. The construction sector, in particular, faced setbacks, with gross added value declining by 1.5% on a quarter-on-quarter basis.
On the employment front, the economy’s expansion translated into more jobs. Full-time equivalent employment increased by 1.9% year-on-year, although this marked a slight dip from the previous quarter’s growth rate. Productivity per hour worked rose by 2.5% over the same period, indicating improved efficiency across sectors.
Carlos Cuerpo, Spain’s Minister of Economy, emphasized the country’s leadership in EU economic growth, highlighting the resilience and dynamism of Spain’s diverse sectors. However, he noted that some industrial branches, including manufacturing, showed signs of slowing.
While tourism, exports, and public spending drove economic gains, certain sectors like construction and housing investment contracted. The construction sector’s value dropped by 1.8%, reflecting broader trends of reduced investment in housing and infrastructure.
Spain’s economic outlook remains optimistic as the year progresses. With tourism projected to sustain momentum and domestic spending showing resilience, the nation is well-positioned to close 2024 with one of the highest growth rates among EU economies.
