Spain is a centre-left governed country under Prime Minister Pedro Sánchez (PSOE), heading to a snap general election on November 29, 2026, after parliament rejected housing reforms and protests over affordability intensified. The economy shows mixed signals: GDP grew 0.6% in Q3 2026 (Eurostat), inflation rose to 4.9% in October 2026 (Eurostat), and public debt was 101.4% of GDP in Q2 2026 (Eurostat), while the IBEX 35 reached 19,369.50 on 2026-11-09.
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The government faces instability following the resignation of Transport Minister Óscar Puente after two deadly train crashes, with right-wing parties coordinating to block the left in the Senate. Geopolitically, tensions persist with Morocco over Ceuta, and pro-Russian hackers have targeted critical infrastructure.
- Politics
- PSOE-led government under Pedro Sánchez; snap election Nov 29, 2026
- Stability
- Snap election Nov 29, 2026; transport minister resigned after deadly crashes
- Economy
- Growth 0.6% (Q3 2026), inflation 4.9% (Oct 2026), debt 101.4% of GDP (Q2 2026)
On record
- Head of government
- Pedro Sánchez (Spanish Socialist Workers' Party, also known as PSOE), Prime Minister of Spain since 2018-06-02
- Head of state
- Felipe VI of Spain, Monarch of Spain since 2014-06-19
- Next elections
- 2026 Spanish general election on 2026-11-29
Key figures
GDP growth vs previous quarter0.6% (Q3 2026)
0.7% in Q2 2026 · 0.6% in Q3 2025
Inflation · HICP, annual rate4.9% (Oct 2026)↑rising
3.9% in Jul 2026 · 3.2% in Oct 2025
Unemployment rate10.3% (Sep 2026)→stable
10.2% in Jun 2026
Economic sentiment · 100 = long-term average105.1 (Oct 2026)→stable
104.4 in Jul 2026 · 103.5 in Oct 2025
Consumer confidence · balance-4.4 (Oct 2026)→stable
-4.6 in Jul 2026 · -0.1 in Oct 2025
10-year government bond yield3.93% (Sep 2026)↑rising
3.41% in Jun 2026
10-year spread over German Bunds0.45 pp (Sep 2026)→stable
0.45 pp in Jun 2026
Government debt101.4% of GDP (Q2 2026)→stable
101.4% of GDP in Q1 2026 · 103.2% of GDP in Q2 2025
Trends
- ↑Housing crisis and political instabilitysince 2026-09
- ↑Transport safety crisissince 2026-01
- ↑Energy grid expansionsince 2026-11
- ↑Cyber threats from pro-Russian actorssince 2024-12
Coming up
- 2026-11-29Snap general election
- 2027-02-07ECB president succession (Lagarde steps down; Hernández de Cos and Knot are candidates)