Renewables, infrastructure and premium exports: Why Spain is Europe’s fastest-growing major economy

AS COMPANIES diversify their supply chains and rethink their global trade relationships, Spain is increasingly positioning itself as a strategic gateway for trade and investment, connecting Europe, Latin America and North Africa.

This growing relevance is underpinned by Spain’s broader economic momentum.

In 2025, Spain recorded a provisional gross domestic product (GDP) of €1.6 trillion (S$2.38 trillion), cementing its position as the fourth-largest economy in the European Union (EU), after Germany, France and Italy.

The same year, Spain’s exports to Singapore totalled US$1.08 billion (S$1.38 billion), up from US$1.01 billion in 2019, when the EU-Singapore Free Trade Agreement (EUSFTA) entered into force.

The International Monetary Fund projects that the Spanish economy will grow by 2.1 per cent in 2026, above the eurozone average of 1.1 per cent.

Infrastructure with global reach

For the fast-growing economies of South-east Asia, Spain’s expertise in infrastructure and transport is particularly relevant.

A world leader in high-speed rail (HSR), Spain operates the second-largest HSR network in the world and the largest in Europe.

Spanish companies have also been involved in building urban transport systems in cities such as Riyadh, London, Dubai, Sydney and Boston.

Notable international infrastructure projects built or managed by Spanish companies include Heathrow Terminal 2 and the Haramain High Speed Railway between Mecca and Medina – Spain’s flagship international rail project, running some 450km across the desert.

The country also ranks ninth globally in transport infrastructure.

Building a renewable future

With a firm commitment to a green transition, Spain is uniquely positioned at the intersection of energy security, sustainability and industrial growth.

The World Economic Forum has highlighted Spain as a clean technology and hydrogen hub, noting that the country accounts for around 20 per cent of the announced green hydrogen projects in the EU.

Its target of scaling green hydrogen production to 12GW by 2030 also reflects continued public support and investment in the sector.

Renewables generated approximately 55 per cent of Spain’s electricity, well above the EU average of around 47 per cent.

Beyond the EU, Spanish companies such as Acciona Energía already operate in dozens of countries and continue to expand their renewable capacity on a global scale.

Premium exports and consumer brands

Consumers in Singapore are likely familiar with Spanish food products such as Iberian ham, olive oil and wine. The country’s favourable conditions for the production of food and beverages are complemented by tradition and technology, resulting in more than 370 quality and origin certifications that guarantee the authenticity and traceability of Spain’s premium food products.

This has translated into a strong structural export orientation. The country currently exports around €80 billion worth of food annually to more than 180 countries, backed by sophisticated logistics and distribution networks.

This is partly enabled by the country’s growing investment in food technology, sustainability and supply chain innovation, with an agri-tech sector comprising some 400 active companies.

Spain’s emphasis on craftsmanship, technology and export competitiveness also extends beyond food into consumer sectors such as fashion, beauty and home furnishings.

From traditional family workshops to large fashion groups capable of responding rapidly to international trends, the Spanish fashion industry combines craftsmanship with industrial scale.

Spain’s fashion sector accounted for 2.9 per cent of the country’s GDP in 2024, spanning apparel, textiles, footwear and accessories, underscoring its economic significance and continued growth.

Global fashion groups such as Inditex and Mango, which together account for 63 per cent of the country’s fashion exports, have also helped strengthen the international profile of Spanish fashion, supporting a wider ecosystem of small and medium-sized brands recognised for their design, quality and creativity.

In 2025, Spanish fashion exports exceeded €35 billion for the second consecutive year, driven by growth in clothing, cosmetics, jewellery and accessories. Companies such as Inditex exemplify an agile retail model with a highly integrated supply chain. On the other hand, luxury houses like Loewe and Balenciaga have rich histories and are also recognised for their craftsmanship and design innovation.

Spanish footwear, in particular, is widely exported and internationally recognised for combining artisanal craftsmanship with modern innovation. The sector is also increasingly embracing sustainable manufacturing practices and eco-friendly materials.

Sustainability and natural ingredients are becoming increasingly prominent within Spain’s cosmetics and perfumery industry, alongside growing investments in environmentally conscious production and innovation. The sector has also emerged as a significant global player, with Spain ranking as the world’s second-largest exporter of perfumes and among the leading exporters of cosmetics internationally.

Backed by strong capabilities in pharmacy, chemistry and dermatological research, Spanish companies continue to invest heavily in research and development to create advanced skincare and beauty formulations.

Alongside global manufacturers, Spain has also cultivated a growing ecosystem of niche beauty brands focused on quality, wellness and innovation, with Spanish cosmetic products now sold in more than 150 countries worldwide.

Spain’s emphasis on design and innovation also extends into sectors such as home furnishings and interior design.

In 2024, Spain ranked 11th among the world’s leading furniture exporters, with a 4.5 per cent export share in the EU and 1.7 per cent globally.

The sector has demonstrated remarkable resilience and export capacity, ending 2025 with a solid 5 per cent growth despite geopolitical uncertainty. Key indicators reflect an industry focused on the foreign market and domestic consumption that increasingly relies on digital channels.

Talent as a competitive advantage

Beyond the economy, Spain’s robust digital infrastructure, healthcare system and quality of life are attracting global talent.

According to InterNations’ 2025 results – one of the world’s largest expat networking and community platforms – Spain ranked first in the EU and ninth globally as a destination for working abroad.

Spain’s digital infrastructure also supports this growing talent ecosystem. The country is among European leaders in ultra-fast broadband coverage, facilitating remote work, digital industries and internationally connected businesses.

Discover more about what Spain has to offer.