By Jesús Aguado
MADRID (Reuters) -The Bank of Spain on Tuesday said it expects the country’s economy will expand by a strong 2.7% this year, up from 2.5% forecast in its previous quarterly update, thanks to soaring private consumption in contrast with the rest of the euro zone.
The bank attributed the increase to recent growth data published at the end of January and the positive impact higher household income will have on consumption. The government’s forecast is for 2.6% growth.
The growth this year will be slower then the 3.2% registered last year, but contrasts with the rest of the euro zone’s large economies such as France, Germany and Italy, which are all expecting growth rates below or close to 1%.
Recent geopolitical tensions represent a risk for the Spanish economy, the Central Bank said in its report, adding its forecast had not computed any effect these tensions may have on world trade and the world economy.
The central bank maintained its growth forecasts for 2026 and 2027 unchanged at 1.9% and 1.7% respectively, and added it expected quarterly growth in the first quarter of between 0.6% and 0.7%.
(Reporting by Jesus AguadoEditing by Inti Landauro, Peter Graff)
Comments