Business · Economy · 4 hrs ago
Spain leads advanced economies in rising government consumption since 2018
The IMF says Spain has led advanced economies in rising government consumption since 2018, during Pedro Sánchez’s time as prime minister.
Government consumption means the public sector’s day-to-day spending on goods and services, including by regional and local administrations.
The IMF puts Spain’s increase at 2.7%, compared with 2.1% across advanced economies and 1.8% in the eurozone.
This spending has helped support Spain’s economic growth, though the country also suffered the steepest pandemic-era GDP fall among the economies compared and then rebounded strongly.
A promised 5% pay rise for public employees is expected to add about €10 billion to government costs.
The IMF forecasts government consumption will rise 2.5% in 2026 and 2% in 2027.
More spending decisions are expected in the coming weeks, including pension increases linked to inflation and a higher minimum wage.
Spain has recorded the largest rise in government consumption among advanced economies since 2018, according to the International Monetary Fund.
The IMF says Spanish government consumption rose 2.7%, compared with 2.1% across advanced economies and 1.8% in the eurozone.
The IMF forecasts that the measure will rise by 2.5% this year and 2% in 2027.
A planned 5% pay rise for public employees is expected to add about €10 billion to government consumption costs.
A CaixaBank study points to higher intermediate consumption, particularly in health, general public services and economic affairs, as a main factor.
- Who
- Spain, compared with other advanced economies.
- What
- Government consumption has risen faster in Spain since 2018. The IMF expects further increases.
- When
- Since 2018, with further rises forecast for 2026 and 2027.
- Where
- Spain.
- Why
- A CaixaBank study points mainly to higher intermediate consumption, especially in health, general public services and economic affairs. The article also cites increased health spending following the pandemic.
This story does not have two clearly opposing sides.
The period used for comparison begins.
Spain’s economy contracted by 10.9% in the year of the pandemic, according to the article.
The IMF forecasts a 2.5% rise in Spanish government consumption.
The IMF forecasts a further 2% rise in Spanish government consumption.
- Spain's rise since 2018
- 2.7%
- Advanced economies' average rise since 2018
- 2.1%
- Eurozone average rise since 2018
- 1.8%
- IMF forecast for Spain in 2026
- 2.5% rise
- IMF forecast for Spain in 2027
- 2% rise
- Planned public employee pay rise
- 5% expected to cost about €10 billion
What people are saying
The public consumption (+2.5% and +2.4% in 2026 and 2027) continues to contribute to domestic demand growth, supported by worker compensation and in an environment where compliance with fiscal rules is becoming increasingly difficult