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La Voz de Madrid

Madrid's Economy to Outpace National Average Until 2027 with Robust Growth

A recent report forecasts a GDP increase of 2.7% in 2026 and the creation of 169,000 jobs, while highlighting housing and international uncertainty as key concerns.

Generic image of upward economic graphs with a blurred city skyline.
IA

Generic image of upward economic graphs with a blurred city skyline.

The Community of Madrid is set to be a key economic driver, with GDP growth projected to exceed the national average until 2027, fueled by services and domestic demand, according to a new report.

The ‘Situación Madrid 2026’ report by BBVA Research anticipates that the Community of Madrid will maintain an economic growth rate higher than the national average until 2027. A GDP increase of 2.7% is projected for 2026 and 2.4% for 2027, following an estimated 3.1% in 2025. This study also forecasts the creation of approximately 169,000 jobs between 2025 and 2027, which would reduce the unemployment rate to 7.1%.
The Madrilenian economy has been primarily driven by public and private services, with a notable contribution from commerce and professional activities, as well as strong domestic demand. However, the report points to moderating factors such as a slowdown in international tourism and limited progress in the construction sector.
In the labor market, social security affiliation in Madrid grew by 2.8% in 2025, surpassing the national average. The sectors contributing most to employment since 2019 continue to be public services, commerce, professional activities, communication, and finance. Household consumption remains robust, with spending via BBVA payment terminals growing by 5.6% in 2025 and 6.7% year-on-year in the first quarter of 2026.
Tourism shows an uneven trend, with a decline in domestic tourism in 2025, but strong growth in spending by Madrilenians outside the region. Geopolitical uncertainty could position Madrid as a safe haven destination, supporting tourist activity in the short term. Other growth drivers include the economy's lower energy intensity, boosted service exports, and improved productivity.
Despite the positive outlook, the report warns of structural challenges, primarily the shortage of affordable housing. This imbalance between housing supply and demand has become a bottleneck for growth and talent attraction. External risks, such as United States trade policy and geopolitical tensions, are also mentioned as potential threats to economic growth and inflation.
The document emphasizes the need to improve labor market efficiency and ensure the sustainability of public finances through a reform of the regional financing system. Despite these challenges, the Community of Madrid boasts a diversified economy and high growth potential, provided that issues related to housing, investment, energy, and fiscal stability are addressed.

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