Spain possesses a highly developed, mixed capitalist economy. It is the 14th-15th largest economy in the world by nominal GDP and the 4th largest in the Eurozone, with a GDP of roughly $1.5 trillion. The economy is heavily service-oriented, with the services sector—dominated by tourism, banking, and retail—accounting for nearly three-quarters of the country's GDP.
While the cost of living is generally lower than in northern European nations like Germany or the UK, wages tend to be proportionately lower. The economy boasts major strengths in infrastructure development, renewable energy, and agricultural exports. However, it continues to face structural challenges, including a dual labor market, reliance on seasonal tourism, and youth unemployment rates that are among the highest in the European Union. Despite these hurdles, Spain has shown strong resilience and robust growth in post-pandemic recovery, heavily supported by European Union recovery funds aimed at green and digital transitions.