Spain's economic confidence rises while eurozone confidence plummets

In December 2024, Spain saw a notable increase in its economic sentiment indicator (ESI), rising to 102.9 points from 102 in November. This growth marks the highest level for the ESI since September 2024 amid a backdrop of declining confidence in other major economies within the eurozone and the EU. The European Commission reported that the ESI for the wider eurozone fell to 93.7 points, a decrease from 95.6 the previous month, indicating growing economic pessimism across the region. It highlights how Spain has managed to improve its economic outlook despite the challenges faced in neighboring countries. Economic sentiment declined significantly in France by 3.0 points, Germany by 2.5 points, and Italy by 1.1 points, with the Netherlands also reporting a drop of 0.2 points. In contrast, Poland experienced a slight increase of 0.1 points. The diverging trends emphasize Spain’s relatively favorable position among the largest economies in the EU. Additionally, the employment expectations indicator in the EU fell to its lowest since February 2021, standing at 98.4 points. For the eurozone, the figure dropped to 97.3 points, and in Spain, it also decreased to 105.5 points from 107.2 in November, marking its lowest since September of the previous year. This mixed signal shows that while Spain’s economic sentiment might be improving, its employment expectations are still facing challenges, mirroring broader trends across Europe. Overall, December proved to be a pivotal month for Spain, displaying resilience in the face of widespread economic uncertainty across the eurozone and EU.