Spanish Government Raises GDP Growth Forecasts for 2025 and 2026, Outpacing Euro Zone Peers
Economy Minister Carlos Cuerpo announces increased GDP growth forecasts, highlighting private consumption and investment as key drivers.
In a recent news conference, Economy Minister Carlos Cuerpo revealed that the Spanish government has raised its gross domestic product (GDP) growth forecasts for 2025 and 2026 to 2.4% and 2.2% respectively. This upward revision of 0.2 percentage points for both years reflects the country's strong economic performance compared to its euro zone counterparts.
Cuerpo emphasized that the growth of GDP in 2025 and 2026 will be primarily fueled by private consumption and investment. Additionally, the government anticipates a gradual decline in the unemployment rate, with projections showing a decrease to 9.7% in 2026 from 12.2% in 2023.
Earlier this week, the government also revised its economic growth forecast for the current year to 2.7%, up from the previous estimate of 2.4%. These adjustments align with a broader revision for the 2021-2023 period released by the Spanish statistics department (INE), which raised the country's economic outlook.
As a result of these revisions, the Spanish economy is expected to widen the gap with the rest of the euro zone. While the twenty-country bloc is forecasted to achieve modest growth of 0.8% this year, Spain's central bank projects a more robust 2.8% expansion for the country in 2021.
In summary, the Spanish government's optimistic GDP growth forecasts, driven by private consumption and investment, demonstrate the country's resilience and outperformance compared to its euro zone peers. This strong economic outlook bodes well for investors and individuals alike, signaling potential opportunities for growth and prosperity in the coming years.