Bank of Spain Forecasts Significant Salary Growth in 2026-2027 Boosted by Public Sector Pay Rise

The Bank of Spain has projected a notable acceleration in salary increases across the country over the next two years, supported significantly by recent wage agreements for public sector employees. This anticipated wage growth is expected to reinforce household consumption, a key factor in sustaining Spain's forecasted economic growth of approximately 2% annually in GDP.

Under the leadership of José Luis Escrivá, the Bank of Spain has revised upward its salary forecasts, reflecting expectations that wage rises will outpace inflation, thereby enhancing workers' purchasing power. A pivotal element driving this wage surge is the agreement between the Spanish government and trade unions representing public sector workers, which could further propel salary growth into 2026 and 2027.

While Spain’s economic expansion continues at a robust pace—recording 2.8% GDP growth in Q3 2025 according to Eurostat—it trails behind several other European countries such as Ireland and Turkey. Despite this, Spain outperforms major European economies like Germany, France, and Italy. The salary increases predicted by the Bank of Spain complement these economic dynamics by potentially sustaining consumer spending and supporting overall economic resilience.

This salary uplift marks an important development for Spanish households, promising improvements in income and consumption in the medium term, crucial for economic stability and growth.