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2025-09-16 19:46:03
[The Spanish government and central bank raised their economic growth forecasts for 2025] Spanish Economy Minister Carlos Cuerpo said that Spain's GDP is expected to grow by 2.7% in 2025, higher than the previous forecast of 2.6%. The Bank of Spain predicts that the country's economy will grow by 2.6%, an increase from the 2.4% forecast in June, and higher than the 1.2% growth forecast for the 20 eurozone countries. Since 2021, the Spanish economy has outperformed other major European economies, supported by household spending, a recovery in tourism and falling energy prices. However, although domestic demand has strengthened compared to three months ago, the Bank of Spain still emphasized that its baseline expectations are still affected to a certain extent by multiple factors, including the euro exchange rate. In terms of inflation, the Bank of Spain also slightly raised its year-end inflation forecast to 2.5%, saying that the rise in inflation is mainly due to rising energy and food prices, while service industry inflation may be lower than expected. The bank expects Spain's inflation rate to slow to 1.7% in 2026.
