Martyn Richard Jones
Remaster for 2026. A Coruña, Galicia, Spain
In 2013, and apropos of nothing, someone in The Guardian told me that “the problem with the Spanish economy is in its fixation on tourism and construction”.
I thought about this for some time, about Spain’s supposed unique reliance on two sectors and the baggage of historical misconceptions and stereotyping that accompanied such views.
Consequently, I decided to respond more substantially, and not just with a terse “no, you’re wrong”, in an effort to try and dispel at least some preconceptions.
Here is a repost of my comment from that time.
What does Spain make?
Well, amongst other things (and it should be emphasised that all these are export products and/or are markets in which Spanish companies operate internationally), we can take into account the following:
- Spain today is the world’s eighth-largest producer of automobiles, and its car market ranks among the largest in Europe (I’ve read in some journals that, in Europe, only Germany manufactures more cars than Spain).
- It makes automobile components, wheels and tyres.
- It has a thriving industry in home electronics and domestic appliances. Ovens, hobs, extractor components, food preparation machinery, fridges and freezers, etc.
- Major civil and military aviation construction and components.
- Aeronautical engines and gas turbines.
- Complex systems design, development and delivery. Including aerospace, space, medical, and scientific systems. For example, INDRA is a world-class player in this space.
- Electronics.
- Ships and boats.
- Textiles.
- Apparel. Companies in this space include ZARA, Jooma, etc. Designing and producing some of the ‘most wanted’ designer clothes in the world.
- Foods and beverages, including some of the best olive oil and wine in the world. And much, much more, including a rapidly-growing ‘organic’ food sector – ‘ecological’ it’s called here; and the quality is strictly monitored and controlled.
- Metals and metal products.
- Chemicals.
- Machine tools.
- Clay and refractory products – high-quality designer tiles, porcelain wash basins, toilets, etc.
- Lighting. High-quality industrial and domestic lighting solutions.
- Footwear. Formal footwear, special purpose footwear, footwear for casual wear, beachwear and sportswear.
- Pharmaceuticals and medical equipment.
- Furniture. From avant-garde to traditional.
- Petroleum, gas, alternative energy generation, energy distribution, and energy trading. Repsol, Endesa and Iberdrola are amongst the big players in this space.
- Telecommunications. Of which Movistar (Telefónica) is the largest player, which also operates in other countries under the Movistar and O2 brands.
- Public works, infrastructure development, and maintenance. Roads, bridges, by-passes, etc. All over the world. Ferrovial are a major player in this space.
- Shipping. Mercantile and passenger transport. Companies operating in this space include Balearia and Acciona.
- Trains – Trains and carriages. Companies like CAF and Talgo are key players in this space. Spanish companies are also involved in rail infrastructure projects, including high-speed, all over the world.
- Transportation. Spanish companies are involved in getting people from A to B, in many places, not just in Spain.
- Banking and other Financial Industry Services. Spanish financial institutions such as Banco Santander and BBVA are significant, internationally recognised players.
- Tourism and Hospitality Industry. This may come as a surprise to some, but Spanish companies are not just involved in this business just at locations in Spain. Large and small Spanish companies operate in these hospitality markets worldwide.
- Entertainment, art, culture. Much of which is universally appreciated.
- Health-care. The most advanced high-tech hospital outside of the USA is located in Dénia, Alicante.
- You may not even have guessed this, but Spain even manufactures and exports snowmobiles and golf carts – and, no doubt, other personal mobility vehicles.
I am aware that I have also not provided an exhaustive exposition of “what Spain does”, and that what I have written here is still somewhat terse. Therefore, I would be happy to expand on any of the points mentioned above.
So, taking this information into consideration, would people still claim that Spain is just about tourism and construction?
Well, clearly not. Although tourism is an important sector, and Spain has natural, social, and cultural attributes that tend to attract enthusiastic visitors from other countries and continents, it certainly isn’t the start or the end.
2026 Vision
Trends & Outlook for Spain toward 2026
Drawing on the most recent 2024–2025 data and macroeconomic forecasts, here are likely developments for key sectors and the Spanish economy over the next ~1–2 years.
Overall economy and macro context
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According to the latest projections by the European Commission, Spain’s GDP growth is expected to moderate from 2.9% in 2025 to around 2.3% in 2026.
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Inflation is projected to ease (from ~2.5–2.6 % in 2025 to about 2.0 % in 2026), which should positively affect real wages and household consumption — supporting domestic demand.
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As public deficits and debt-to-GDP ratios improve somewhat, fiscal sustainability could allow for more public investments or industry-supportive measures.
Implication: Spain will likely maintain moderate but steady growth. Domestic demand and consumption could remain a backbone, even if global headwinds or weak external demand moderate export-driven sectors.
Automotive & Mobility / Industrial Manufacturing
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The automotive industry remains one of the anchors of Spanish manufacturing: as of 2024, Spain produced ~ 2.38 million vehicles, making it the 2nd largest vehicle-producing country in Europe (after Germany), and among the top 10 globally.
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However, there has been a downward trend recently: 2024 output fell ~ 3% vs 2023. In 2025 the decline continues, with a drop of about 5.2% by September 2025, and exports also falling.
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The downturn is largely due to weak demand in Europe combined with the retooling of plants for electrified and hybrid vehicles — a structural transformation.
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On the flip side, the supply-chain side (components, parts, suppliers) remains significant: in 2024 Spanish suppliers exported automotive components worth billions, and Spain ranks among the top exporters of auto parts in Europe.
Outlook to 2026:
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We may see further decline in total vehicle production (particularly traditional petrol/diesel), unless demand rebounds or electrification ramps up strongly.
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But shift toward EVs / hybrids / green mobility is likely to accelerate — factories retooled for electric vehicles, and demand (both domestic and in export markets) may gradually pick up, especially as EU decarbonization policies tighten.
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Export-oriented auto-component manufacturing could remain a stable pillar — less volatile than complete-vehicle manufacturing.
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In short: the automotive sector may shrink in volume but transform in structure — from conventional combustion-engine cars toward electrified mobility, and from vehicle-centric to supply-chain-centric activity.
Manufacturing beyond automotive — Machinery, Industry, Appliances, Materials, Shipbuilding, etc.
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Spain has diversified manufacturing: from home appliances and domestic electronics, metal products, machinery, metalworking tools, tiles, ceramics and refractory products, lighting, furniture, footwear and textiles, and more.
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Given structural pressures in automotive, these other manufacturing niches may gain relative importance — especially where they involve exportable goods, quality craftsmanship, or specialised production (e.g. industrial machinery, high-precision components, ceramics, metals, furniture, etc.).
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The push toward sustainability, energy efficiency, green construction and renovation in Europe (including Spain) could create extra demand for high-quality materials, energy-efficient appliances, industrial lighting, and building-related manufacturing — benefiting Spanish makers.
Outlook: modest but steady growth in non-automotive manufacturing, especially in segments where Spain has a competitive edge (e.g. speciality materials, industrial products, building products, sustainable appliances). Export potential remains high, especially beyond the EU (if global markets recover).
High-tech, Aerospace, Defence, Systems — Innovation-intensive sectors
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You mentioned aerospace, space, medical & scientific systems, high-tech electronics, complex systems design (e.g. via firms like INDRA). This is consistent with efforts over the past decades to diversify Spain’s industry toward higher value-added, knowledge-intensive sectors.
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Given global trends — higher demand for aerospace technologies, defence, medical equipment, space applications (satellites, telecom, Earth observation), and complex electronics — Spain could gain a share of investment (public and private) if its firms remain competitive.
Outlook: 2026 may see acceleration in exports and international contracts in high-tech, aerospace, defence and systems engineering — possibly becoming a more visible pillar of “Made in Spain” beyond traditional manufacturing.
Agro-food, Wine & Olive Oil, Organic Food, Beverages
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Agriculture and food have long been traditional strengths. With growing global demand for Mediterranean products (olive oil, wine, healthy/organic food), plus a rising interest in quality, provenance, and sustainable agriculture, Spanish agro-food could see renewed growth.
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Combined with Spain’s push toward “ecological/organic” production (as you mention) and growing gastronomic and culinary tourism, this sector may continue to flourish, domestically and internationally — especially in export markets that value quality and origin.
Outlook: stable or moderate growth, especially in niche, premium or organic segments; growing exports of wine, olive oil, speciality foods, and increased added value rather than commodity bulk production.
Energy, Renewables, Telecommunications, Infrastructure, Transport & Logistics
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Spain’s energy sector (including renewables), infrastructure, shipping, rail, transport manufacturing (trains, carriages), and telecom remain essential — and likely to grow, given Europe’s twin push for green energy/transition and improved connectivity/infrastructure.
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Firms active in railway rolling stock (e.g., carriages and infrastructure), renewables, energy distribution, public works, and global infrastructure projects may benefit from investments across Europe, Latin America, Africa, and beyond — especially as global demand for green energy and modern infrastructure remains high.
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Similarly, telecom and digital infrastructure — with the transition to 5G/6G, renewables, energy-grid modernisation — could see rising demand.
Outlook: growth, especially in renewables, infrastructure, energy-distribution, transport, manufacturing, and logistics/export services. Spanish firms may continue to secure international contracts, boosting Spain’s industrial export profile.
Services: Tourism, Hospitality, Culture, Finance — but evolving
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Tourism remains a major pillar: 2024 was reportedly a record year for inbound tourism in Spain, showing resilience and continued appeal.
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However, two dynamics are increasingly important: (1) a shift toward higher value-added tourism (luxury, off-season, cultural/experiential travel, gastronomy, regional and inland areas) rather than just mass “sun and beach”; and (2) diversification within services — finance, telecom, digital services, professional services, real estate, etc. Analysts from Goldman Sachs note Spain’s advantage in high-value-added services beyond tourism.
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Given this, while tourism remains strong in 2026, its relative weight may gradually decline as other service sub-segments and high-value industrial exports grow.
What this means for the “Spain is more than tourism & construction” narrative
Your core argument stands — and will likely become even stronger by 2026. Spain is evolving toward a more diversified, complex, and internationally integrated economy. By 2026 you might see:
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A smaller relative share of low-value-added sectors (mass tourism, basic construction), because of global competition, environmental constraints, and structural economic shifts.
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A larger share of high-value manufacturing (aerospace, machinery, components, industrial goods), green-energy and infrastructure exports, renewables and energy-related industries, and high-value services (tech, engineering, systems, design, finance, infrastructure deployment).
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Spanish firms gaining ground globally not only as “oil and sun + beach” tourism contractors or low-cost producers, but as sophisticated exporters — in automobiles (especially EVs/components), aerospace, renewable energy, infrastructure, systems, high-quality manufacturing, agro-food, furniture, design — a much more balanced economic structure.
Risks and headwinds to watch
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The transition in automotive is not risk-free: weak demand in Europe, supply-chain disruptions, rising competition (from lower-cost countries or a shift in geopolitics), and the complexity of electrification could lead to factory closures or job losses if not managed well.
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Global economic slowdown, volatility in commodity prices, or trade tensions may hurt exports — especially in heavy manufacturing and commodities.
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Climate change and environmental pressures may force structural change in tourism (e.g., overheating in coastal areas and water scarcity) and in agriculture, requiring adaptation.
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Competition from other emerging economies, especially in manufacturing and agro-food sectors, could compress margins if Spanish industries don’t continuously invest in innovation, quality, and differentiation.
Thanks for reading.
File under: Good Strat, Good Strategy, Martyn Richard Jones, Martyn Jones, Cambriano Energy, Iniciativa Consulting, Iniciativa para Data Warehouse, Tiki Taka Pro
