IMF Revises Spain's Growth Forecast Upwards as Global Economy Faces Slowdown

The International Monetary Fund (IMF) has significantly improved Spain's economic growth outlook, projecting a 2.9% expansion in 2025 and 2.0% in 2026, positioning Spain as the top growth performer in the Eurozone. This upbeat forecast contrasts with the broader global economic slowdown, as reported in the IMF's latest World Economic Outlook. While the Eurozone as a whole is forecasted to grow only 1.2% in 2025, key economies such as Germany, France, and Italy are expected to see minimal growth of 0.2%, 0.7%, and 0.5%, respectively.

Spain's growth is supported by robust domestic consumption and a thriving tourism sector, although a moderation in expansion is anticipated in 2026. The IMF attributes the subdued Eurozone growth to structural challenges including low investment levels and uncertainties arising from ongoing trade tensions, particularly the impact of US tariff policies that have affected international trade flows and increased public debt across the region.

The IMF report also highlights rising public debt concerns, predicting that by 2030 European public debt could reach 92% of GDP, up from 87% in 2024, with Germany’s budget deficits notably widening due to increasing defense and infrastructure expenditures. In the United States, economic growth is forecasted at 2% in 2025 but faces signs of deceleration, including an anticipated rise in unemployment to 4.3%. US fiscal policy is described as overly expansive and unsustainable, with federal debt projected to reach 143% of GDP by 2030.

China's growth is expected to slow to 4.8% in 2025 due to a decline in real estate investment, despite government efforts to buffer the downturn. Globally, inflation is forecast to moderate to 4.2% in 2025 and 3.7% in 2026, though trends vary by region, with the Eurozone maintaining inflation around 2.1%.

The IMF warns that the global economy faces mounting vulnerabilities including protectionism, elevated debt levels, and a lack of structural reforms, which may constrain growth over the coming decade. Authorities worldwide are urged to implement credible and sustainable policies to restore confidence amid this fragmented and fragile economic environment.