Spain’s economy expanded 0.6% quarter-on-quarter in the third quarter of 2026, according to preliminary data from the National Statistics Institute, slowing from 0.7% in the second quarter. Annual GDP growth was 2.7%, while full-time equivalent employment rose 0.2% from the previous quarter and 1.6% from a year earlier. Household consumption increased 0.6%, public spending rose 0.9% and fixed investment grew 0.1%. Exports advanced 1.3%, outpacing a 1.1% increase in imports, while industrial output and services each expanded 0.7% and construction was broadly unchanged. Annual consumer inflation remained at 4.9% in October, matching September’s rate, as consumer prices rose 0.6% month-on-month. Core inflation, excluding unprocessed food and energy, stood at 3.1% annually and increased 0.5% from the previous month. Spain’s central bank has maintained a 2.6% growth forecast for 2026, followed by 2.2% growth in 2027, with private consumption and exports expected to support activity amid inflation, geopolitical tensions and rising bond yields.