Why are Spain and Portugal growing twice as fast as the eurozone?

Spain and Portugal’s economies grew significantly faster than the rest of the eurozone in the final quarter of 2025. Both countries expanded by 0.8% in that period — more than double the eurozone average of 0.3% — according to preliminary Eurostat data. Spain recorded its strongest quarterly growth in a year, with annual GDP growth of 2.8%, driven mainly by domestic demand, including increased household consumption, rising investment, and strong activity in tourism and construction. Lower energy prices and easing inflation helped boost consumer confidence.

Portugal also grew by 0.8% in the fourth quarter and 1.9% for the year. Its growth was supported largely by an improvement in the trade balance, especially due to a reduction in imports, which helped offset weaker domestic demand. Although both Iberian economies outpaced the wider eurozone, growth across the bloc remained uneven. Some member states saw modest gains while others lagged behind.

Source: Euronews – Business
Link: https://www.euronews.com/business/2026/01/30/why-are-spain-and-portugal-growing-twice-as-fast-as-the-eurozone