The Spanish economy and the rise of trade blocs
Spanish economy
Fecha: septiembre 2025
Raymond Torres
SEFO, Spanish and International Economic & Financial Outlook, V. 14 N.º5 (September 2025)
Globalization has undergone significant changes in recent years, particularly since the start of President Donald Trump's second term. World trade and international investment are increasingly following a blocbased logic, underscoring the weakening of multilateralism. In this context, the Spanish economy has managed to maintain a significant external surplus, although this lt masks two contrasting realities. On the one hand, the trade balance with the EU has improved, thanks to gains in competitiveness vis-à-vis EU partners, thereby offsetting the sluggishness of the single market. Between 2019 and the first quarter of 2025, Spanish exports of goods and services to the EU increased by 49%, a rate higher than that recorded by Germany, France, and Italy. On the other hand, the balance with the U.S. and China has deteriorated sharply, particularly since the start of the trade war, as a result of structural weaknesses of the Spanish export model. Spain imports around €45 billion from China, six times more than the €7.5 billion it exports, highlighting the scale of this imbalance. All of this requires revitalizing the single market, strengthening the EU's negotiating capacity, and creating favorable conditions for investment in Spain.