AndalucíaAragónAsturiasIlles BalearsCanariasCantabriaCastilla y LeónCastilla-La ManchaCatalunyaExtremaduraGaliciaMadridMurciaNavarraPaís VascoLa RiojaComunitat ValencianaAndalucíaAragónAsturiasIlles BalearsCanariasCantabriaCastilla y LeónCastilla-La ManchaCatalunyaExtremaduraGaliciaMadridMurciaNavarraPaís VascoLa RiojaComunitat Valenciana
ES|EN

Diario PYME

Madrid: National Economic Engine and Second Most Populous City in Europe

The Spanish capital generated 12.5% of the national GDP in 2025, with a service-based economy and a low unemployment rate.

Generic image of euro coins and banknotes on a desk, with a blurred city skyline in the background at sunset.
IA

Generic image of euro coins and banknotes on a desk, with a blurred city skyline in the background at sunset.

The Spanish capital solidifies its position as a fundamental economic pillar, contributing 12.5% of the national Gross Domestic Product in 2025 and standing out for its dynamism in the services sector.

The Madrid City Council has presented its 2025 Socio-Economic Report, positioning the capital as the country's main urban engine. With a population of 3.52 million inhabitants, the city demonstrates a strong presence of the advanced tertiary sector and hosts over 1,600 active technology companies.
In 2025, Madrid contributed 12.5% of the national GDP, equivalent to 211,324.9 million euros. The capital's economy is primarily based on services, which account for 89.2% of the added value. The unemployment rate stood at 6.6%, significantly below the Spanish average of 9.9%. These figures were revealed during the report's presentation by the delegate of Finance and the deputy mayor.
Despite having only 7.1% of Spain's total population, Madrid generates wealth far exceeding its demographic weight. The report emphasizes the city's progress towards full employment, driven by a dynamic labor market and the strength of high value-added services, consolidating its position as one of the country's major engines.
As of January 1, 2025, Madrid registered 3,527,924 registered residents, an increase of 67,400 from the previous year. 80% of residents hold Spanish nationality, and women constitute the majority with 53.1% compared to 46.9% men. The City Council also highlights that Madrid doubles the population of Barcelona and exceeds that of Valencia by more than four times, establishing itself as the second most populous city in Europe.
Madrid's GDP represents 62.8% of the regional total, raising the GDP per capita to 58,102 euros per inhabitant, 78% higher than the Spanish average of 32,633 euros. In 2025, the city experienced a growth of 2.9%, two tenths less than the Community of Madrid but one tenth more than the country as a whole. This performance was highlighted in an international context marked by uncertainty.
The services sector continues to be the backbone of Madrid's economy, generating almost nine out of every ten euros in the city. Industry contributes 6.7% and construction 4.1% in terms of Gross Value Added, confirming the capital's predominantly tertiary profile. Within this sector, advanced tertiary activities, including professional, scientific, technical, information, and communication services, account for more than 31.7% of the Gross Value Added from services.

Related News