finance

Spain cuts 2025 deficit to 2.2% of GDP, lowest since 2007

Spain closed 2025 with a 2.2% public deficit, the lowest since 2007 and below its 2.5% EU commitment, supported by strong tax receipts and above‑average GDP growth.

Mar 31st 2026 · Spain

Insights

  • General government deficit fell to 2.2% of GDP in 2025, below the 2.5% commitment to the EU.
  • Including Valencia disaster spending the deficit rises to 2.4% and still meets the EU limit.
  • The deficit narrowed by €9 billion in 2025 to €36,780 million and by about €76 billion since 2020.
  • Spain recorded a primary surplus for the first time in almost 20 years.
  • Tax revenue grew 10.4% to €325.356 billion, led by IRPF, VAT and corporate tax increases.
  • GDP expanded 2.8% in 2025, outperforming the euro area average of 1.4%.
  • Public debt fell to 100.7% of GDP at end-2025, about €1.698 trillion, with a government target of 90% by 2031