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SPAIN'S GDP GROWTH FORECAST REVISED UPWARDS
Spain's economy grew stronger than expected in Q2 2024 (+0.8% quarter-on-quarter), outperforming the eurozone. Historical growth rates have been revised upwards, with overall GDP growth of 5.7% since 2019. Despite headwinds such as high inflation and German stagnation, strong employment and tourism support growth.
For 2024, the growth forecast has been raised to 2.8%, while 2025 expects a slightly more moderate growth of 2.3%. Domestic demand, especially consumption and investment, becomes a more important driver, helped by purchasing power recovery, falling interest rates and European subsidies (NGEU).
Risks include geopolitical tensions, slow NGEU implementation and a possible economic deterioration in Germany or China. However, the situation remains positive, with high inflation and a very strong economy.
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