The Spanish government has increased its GDP growth projections for 2025 and 2026 to 2.4% and 2.2%, respectively, as stated by Economy Minister Carlos Cuerpo on Tuesday, who noted that Spain's economy is performing better than those of its eurozone counterparts.
The government adjusted its forecasts for both years by 0.2 percentage points, according to Cuerpo during a press conference.
“The factors that will drive the growth of GDP in 2025 and 2026 will be private consumption and investment,” he said.
Furthermore, the government predicts that the country’s unemployment rate will gradually decrease to 9.7% by 2026, down from 12.2% in 2023.
The minister said on Monday that the government has increased its economic growth forecast for this year to 2.7%, up from the previous estimate of 2.4%, Reuters news agency reports.
Despite the expected increase in growth, the ministry maintained its deficit forecast for this year at “close to 3% of GDP.”
The upgraded forecasts come after a comprehensive revision for the 2021-2023 period announced last week by the Spanish statistics department (INE).
This revision estimated the Spanish economy to be worth €1.5 trillion euros in 2023 and raised the annual growth rate for this year to 2.7%, up from 2.5%.
With this adjustment, the Spanish economy is increasing its lead over the rest of the eurozone, which is projected to grow only 0.8% this year, according to data from the European Commission.
Indeed, Spain's central bank predicts a growth rate of 2.8% for this year, along with a quarterly expansion of 0.6% in the third quarter.
News you might like
Fastest growth in Spain's services sector activity since May 2023
Spain's services sector activity grew last month at the fastest pace in nearly a year as robust demand resulted in businesses increasing capacity and recruiting additional staff, according to the findings of a survey published on Monday.
posted on 06.05.2024
Spanish banks' lending income growth forecast to slow down
Growth in the lending income of Spanish banks is forecast to decelerate this year due to a gradual rise in deposit remuneration, whilst bad loans could increase due to the impact of global geopolitical tensions on the economy
posted on 16.04.2024
Spain to launch public tech investment firm with €20bn capital
Spain is due to launch a new state-owned tech investment company to bolster the semiconductor and audiovisual industries, amongst others, according to an announcement by Digital Transformation Minister Jose Luis Escriva on Monday.
posted on 27.02.2024