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2025-09-16 19:02:21
Spain's economic resilience is evident, with both inflation and deficits declining. (1) The Bank of Spain expects third-quarter gross domestic product (GDP) to grow by 0.6%-0.7% quarter-on-quarter, demonstrating robust economic expansion. (2) The institution raised its full-year GDP growth forecast for 2025 to 2.6%, higher than its previous estimate of 2.4%, but maintained its GDP growth forecasts for 2026 and 2027 at 1.8% and 1.7% respectively. (3) The inflation forecast for 2025 was raised to 2.5%, higher than the previous estimate of 2.4%, but lower than the 2.9% projected for 2024, indicating that inflationary pressures are gradually easing. (4) Notably, the Bank of Spain lowered its 2025 budget deficit as a percentage of GDP forecast to 2.5%, significantly lower than the previous estimate of 2.8%, indicating an improvement in the fiscal situation. ⑸ It is expected that Spain's debt-to-GDP ratio will reach 100.7% by the end of 2025, then fall to 100.4% by the end of 2026, and further fall to 100% by the end of 2027, showing the government's efforts in controlling debt.
