Spanish economy grows 0.7% in Q2 2026 despite energy costs

The Spanish economy demonstrated resilience in the second quarter of 2026, with GDP growth accelerating to 0.7%. This represents a 0.1% increase compared to the first quarter, driven largely by a 0.6% rise in internal demand. According to analysis by the Confederación de Empresarios de Cuenca, the economy has maintained an annual growth rate of 2.7% for four consecutive quarters, leading to an upward revision of the annual growth forecast to approximately 2.5%.

This expansion occurred despite the impact of the conflict in Iran and rising energy costs. While certain sectors faced challenges—such as a decline in capital goods investment to 0.1% and stagnation in housing and construction—investment in intellectual property rose to 1.7%. Additionally, employee remuneration grew by 4.1% year-on-year, even as corporate profit margins moderated.

The geopolitical situation and increased logistics costs have significantly impacted the external sector. In the province of Cuenca, international sales saw a sharp contraction, with foreign trade volume reaching 324 million euros in the first half of the year, marking a 25.2% decrease.