Spain’s central bank has adjusted its economic growth forecast for the year, lowering it to 2.4% from the previous 2.7%, according to Governor Jose Luis Escriva. The revision, announced on Monday, is attributed to ongoing global trade tensions, although Spain’s projected growth still surpasses the euro zone’s average.
In addition to the adjustment for this year, the Bank of Spain has also slightly decreased the growth outlook for the following year, bringing it down to 1.8% from 1.9%. This is a step down from the 3.2% expansion experienced last year, a reduction that Escriva attributes to diminished growth in other economies due to the uncertainty brought about by the ongoing tariff war involving the United States, China, and Europe.
Escriva noted that Spain’s central macroeconomic scenario incorporates moderate tariff increases and a fiscal boost in defense spending. This comes as the European Central Bank has projected an average growth of 0.9% across the common currency area in 2025, and 1.1% in 2026.
In addition to the growth forecast, the Bank of Spain has also made adjustments to the inflation forecast for this year, lowering it to 2.4% from the previous 2.5%, as stated by Escriva.
