Bank of Spain Upgrades Growth Forecasts for 2024 and 2025 Amid Stable Inflation
The Bank of Spain will increase its economic growth forecasts for 2024 and 2025, citing stable inflation and continued resilience.
- • Bank of Spain to revise growth forecasts upwards for 2024 and 2025.
- • GDP growth for 2023 raised to 2.6%.
- • Interest rates held steady at 2%, with inflation stable.
- • Need to expand affordable housing supply for low and middle incomes.
Key details
José Luis Escrivá, Governor of the Bank of Spain, announced that the institution will revise upwards its economic growth projections for Spain in 2024 and 2025, reflecting the country's robust recent economic performance. The Bank previously raised the Gross Domestic Product (GDP) growth forecast for 2023 to 2.6% in September, and expects a more significant upward revision in 2024, with only minor adjustments anticipated for 2025.
Escrivá emphasized that Spain's economy is outperforming the broader European economy, underscoring its resilience. Inflation is currently stable, negating the need for changes in interest rates, which the Bank of Spain has kept steady at 2%, in alignment with the European Central Bank. He noted that the effects of previous interest rate cuts are delayed, meaning financing conditions are expected to remain stable in the near term.
Highlighting social challenges, Escrivá pointed to the urgent need to increase the supply of affordable housing for low and middle-income groups to meet rising demand. This issue remains critical despite the positive economic outlook.
These upward revisions and stable monetary policy signal confidence in Spain's economic resilience as it navigates growth prospects in the near future.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
