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Spain’s Economy Posts Strong Growth in 2024, Outpacing Eurozone Peers

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Spain’s economy expanded by 3.2% in 2024, making it one of the fastest-growing economies in the eurozone. Strong domestic demand, a thriving tourism sector, and the continued rollout of European recovery funds drove the country’s robust performance, outpacing major economies like Germany, France, and Italy. Economists expect Spain’s economic momentum to carry into 2025, maintaining its position as a “bright spot” in Europe.

Strong Economic Expansion

Spain’s GDP grew by 0.8% in the fourth quarter of 2024, according to the National Statistics Institute (INE), bringing full-year growth to 3.2%. This figure is more than three times the eurozone’s average growth of 0.9%. Among eurozone nations, only Malta (6%), Croatia (3.8%), and Cyprus (3.4%) recorded stronger growth.

In contrast, Germany’s economy shrank by 0.2%, while France and Italy registered modest growth of 1.1% and 0.7%, respectively.

The Spanish economy benefited from a mix of structural improvements and favorable economic conditions. Key growth drivers included resilient household spending, a booming tourism industry, and effective use of EU recovery funds.

Drivers of Growth

Domestic demand played a crucial role in Spain’s expansion, contributing 3.6 percentage points to overall GDP growth. Household consumption rose by 1%, while investment surged by 2.9%. Public expenditure also increased by 0.3%. However, external demand remained weak, as imports (+1.4%) outpaced sluggish exports (+0.1%), creating a slight drag on overall growth.

Across industries, most sectors saw gains. The construction sector grew by 2.7%, services by 1.0%, and manufacturing by 0.5%. Only the primary sector, which includes agriculture and fishing, experienced a decline of 0.7%.

Tourism Fuels Economic Strength

Spain’s tourism sector continued its strong recovery, welcoming an estimated 94 million international visitors in 2024—a 10% increase from the previous year. Economist Judit Montoriol Garriga from CaixaBank Research noted that the sector showed “no signs of cyclical exhaustion,” with tourism-related GDP projected to rise by 3.6% in 2025. The industry’s growing contribution to Spain’s economy is expected to reach 13.2% of GDP, up from 12.9% in 2024.

The tourism sector’s success has significantly benefited related industries, including retail, hospitality, and transport services.

Outlook for 2025: Continued Growth, but Slower Pace

Spain’s economic growth is expected to moderate in 2025, though it is likely to remain one of the strongest performers in the eurozone. The Organisation for Economic Co-operation and Development (OECD) forecasts a 2.6% GDP increase for Spain, compared to projected growth of just 0.4% in Germany, 0.8% in France, and 0.7% in Italy.

Montoriol Garriga anticipates 2.5% growth in 2025, driven by factors such as falling interest rates, higher household purchasing power, and continued EU recovery fund disbursements. The latest outlook from BBVA also suggests that Spain and Portugal will continue to outperform core eurozone economies.

Inflation and Economic Stability

Inflation remains relatively stable in Spain. Harmonized consumer prices rose by 2.9% year-on-year in February 2025, with core inflation—excluding volatile energy and food prices—easing to 2.1%, close to the European Central Bank’s 2% target. However, some economists warn that rising producer prices, which surged 6.6% year-on-year in February, could push consumer prices higher in the coming months.

Recovery Funds Continue to Support Growth

Spain has benefited significantly from the European Union’s NextGenerationEU (NGEU) recovery program. By the end of 2024, the country had allocated €47.6 billion in grants and tenders, representing about 60% of the total grant package. In December 2024, Spain requested an additional €8 billion in grants and €15.9 billion in loans from the European Commission.

According to a Bank of Spain survey, nearly half (45%) of Spanish companies stated they would not have made their investments without NGEU funding, highlighting the program’s role in supporting economic expansion.

Labour Market and Housing Sector

Spain’s labor market remained strong in 2024. The unemployment rate fell to 10.61% in the fourth quarter, marking its lowest level since 2008. Total hours worked increased by 2.8% year-on-year, while full-time equivalent employment grew by 2.3%.

Meanwhile, the housing market continued to show resilience. Home prices rose by 5.8% in 2024 and are expected to increase by 5.9% in 2025. Transaction prices climbed by 8.4% last year, with further growth anticipated.

Spain’s Economic Outlook Remains Positive

Despite expectations of a slowdown from 2024’s rapid pace, Spain’s economy is likely to remain one of the eurozone’s strongest performers in the coming years. The OECD projects 2.1% growth for Spain in 2026—nearly double the forecasted growth rates for Germany, France, and Italy.

With a robust domestic economy, a thriving tourism sector, and continued investment from EU recovery funds, Spain’s post-pandemic economic expansion appears set to continue well into the future.

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Women Entrepreneurs in the UK Face Major Hurdles in Accessing Business Funding, Study Finds

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A growing body of research continues to reveal the challenges women entrepreneurs in the UK face when accessing business funding, with a recent report highlighting a stark disparity between male- and female-led companies in terms of debt and investment.

The report, published by finance broker Swoop Funding, examined data from over 50,000 UK businesses and found that male-led companies collectively hold £9.5 billion in business debt, compared to just £769 million for female-led ventures. On average, businesses run by men carry £315,000 in debt, while women-run companies average just £91,000.

While debt is not inherently negative—often used to support expansion or manage operational costs—the figures point to a broader issue of inequality in financial access and confidence in seeking funding.

Andrea Reynolds, CEO of Swoop Funding, said the discrepancy stems partly from differences in approach. “The simple answer is that men ask for funding earlier in the process than women do,” she explained. “Many women bootstrap their businesses from the kitchen table and hesitate to seek loans.”

The gender investment gap extends beyond traditional loans. According to the British Business Bank, for every £1 of venture capital invested in the UK, all-female founder teams receive less than 1p. All-male teams take 89p, while mixed-gender groups receive the remaining 10p. At this rate, experts say it could take more than 25 years for all-female teams to secure even 10% of all VC deals in the UK.

A lack of awareness around available funding, limited networks, and persistent cultural biases around borrowing have also contributed to the gap. Reynolds noted that lenders could do more to market start-up loans specifically to women and to dispel misconceptions about responsible business debt.

Entrepreneurs like Stacey-Rebekka Karlsson, founder of Goho Agency, offer real-life examples of how access to credit can drive success. Karlsson used a £25,000 government Bounce Back loan during the COVID-19 pandemic, which she said helped her business expand and deliver comprehensive services to clients. “We’ve managed to grow the business every single year since,” she noted.

Experts suggest a multi-pronged approach to closing the gap, including seeking out female-focused investment groups, networking platforms like Female Founders Rise, and government support schemes such as the Women in Innovation Awards and the Prince’s Trust Women Entrepreneurs Programme.

Building financial literacy, tracking credit scores, and planning strategically how to use funding are also key to long-term success. By addressing these structural barriers and offering targeted support, advocates say the UK can help unlock the full potential of its female entrepreneurial talent.

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Trump Secures $200 Billion in UAE Deals, Anchored by World’s Largest AI Campus Outside U.S.

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U.S. President Donald Trump has concluded his tour of the Persian Gulf with a major economic victory, announcing $200 billion (€179 billion) in agreements with the United Arab Emirates. The deals span artificial intelligence, aviation, energy, and industrial development, highlighting deepening economic ties between Washington and Abu Dhabi.

The centrepiece of the announcement is the creation of what is set to become the world’s largest AI campus outside the United States. The 10-square-mile facility will be built in Abu Dhabi by G42, a leading UAE artificial intelligence firm, in partnership with several American technology companies. With a planned capacity of 5 gigawatts, the campus will support advanced AI computing needs across the region and for developing nations in the Global South.

The new AI campus will host American hyperscalers and large enterprises, enabling regional compute capabilities while serving the Global South,” the U.S. Department of Commerce said in a statement.

The White House confirmed the UAE may be permitted to import up to 500,000 of Nvidia’s H100 GPUs annually through 2027, with around 20% allocated to G42. While some U.S. officials have expressed concern about potential technology leaks to China, the agreements include safeguards to ensure secure access and restricted technology sharing.

The UAE is committed to safeguarding advanced AI technologies by implementing stringent measures to prevent diversion and ensure controlled access,” the Commerce Department added.

UAE President Sheikh Mohamed bin Zayed Al Nahyan praised the agreement as “a testament to the ongoing collaboration between our countries in artificial intelligence.”

Commerce Secretary Howard W. Lutnick hailed the deals as a “major milestone in achieving President Trump’s vision for U.S. AI dominance.”

In addition to AI, the UAE committed to significant aviation and energy investments. Etihad Airways, the country’s national carrier, confirmed a $14.5 billion order for 28 widebody Boeing aircraft, including 787 and 777X models powered by GE Aerospace engines. The announcement comes just a day after Boeing signed a $96 billion agreement with Qatar Airways, driving its stock to a 52-week high.

In the energy sector, the Abu Dhabi National Oil Company (ADNOC) signed a $60 billion agreement with U.S. giants ExxonMobil, Occidental Petroleum, and EOG Resources to expand upstream oil and gas projects.

Other industrial deals include partnerships with Emirates Global Aluminum to advance aluminium smelting and gallium production.

The UAE agreements bring Trump’s total haul from the Gulf tour to $1.4 trillion, following earlier deals worth $600 billion with Saudi Arabia and $243 billion with Qatar. The trip underscored the Gulf region’s growing role in global tech and industrial investment, and the Biden administration’s strategic pivot toward economic cooperation in the Middle East.

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Boeing Lands Record $96 Billion Deal with Qatar Airways During Trump’s Middle East Trade Tour

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Boeing shares soared to their highest level in over a year after the U.S. aerospace giant secured a landmark $96 billion agreement with Qatar Airways, marking the largest widebody aircraft order in the company’s history. The deal was unveiled during former President Donald Trump’s ongoing trade mission across the Gulf region.

The agreement was part of a broader $243.5 billion package of U.S.-Qatar deals announced by the White House during Trump’s visit to Doha. It includes the sale of 130 Boeing 787 Dreamliners and 30 777X aircraft, reinforcing Washington’s deepening commercial ties with Gulf states.

This order represents a record for Boeing and a pivotal moment for American manufacturing,” the White House said in a statement. “These historic deals will fuel economic growth, support nearly 400,000 American jobs, and reaffirm our leadership in aerospace technology.”

Boeing’s stock rose 2% on Wednesday, hitting a 52-week high in response to the announcement. The company described the order as its largest-ever for widebody jets and the biggest single purchase by Qatar Airways to date.

Qatar Airways CEO Engr. Badr Mohammed Al-Meer called the agreement a strategic move beyond mere fleet expansion. “We are building strength to deliver unmatched customer experiences,” he said, adding that the new aircraft will help the airline enhance global connectivity with improved efficiency and comfort.

Boeing CEO Kelly Ortberg, who joined Trump on the Middle East tour, hailed the deal as a major milestone for the company, which has struggled in recent years due to safety and production setbacks, particularly with its 737 MAX line. The company had also faced headwinds from U.S.-China trade tensions, which saw Beijing halt orders for Boeing jets in April.

In a related development, Boeing also secured a $4.8 billion order for 737-8 MAX aircraft from Saudi leasing firm AviLease earlier this week, further boosting its commercial prospects in the region.

Trump’s visit to Qatar follows a $600 billion investment plan signed with Saudi Arabia earlier in the week and precedes a scheduled stop in the United Arab Emirates, where additional aviation deals are anticipated.

The Boeing-Qatar agreement is one of several high-profile announcements during the former president’s tour, which also saw the finalization of an $80 billion artificial intelligence investment partnership with Saudi Arabia. These deals have not only strengthened U.S. business interests in the region but also driven gains across tech and aerospace stocks.

As geopolitical and trade dynamics continue to shift, Boeing’s historic order underscores the Gulf’s growing importance in the global aviation and technology supply chains.

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