The Bank of Spain forecasts that the Spanish economy will grow this year by 1.9%, three tenths more than forecast in December, and at a rate that is close to the 2% growth in GDP estimated by the government.
A dynamism that contrasts with the weakness of the eurozone, which will grow by only 0.6% in 2024.
There are three main reasons for the upward correction: a driving effect of the acceleration recorded in the last quarter of 2023;
lower energy costs with a significant decrease in electricity costs in February and early March: the more gradual withdrawal of the anti-inflation shield measures than announced.
"We do not expect the level of public consumption to remain in 2024, it would be incompatible with the recommendations of the European Commission", explained Angel Gavilan, director general of Economics and Statistics of the Bank of Spain in presenting the forecasts.
Compared to inflation, the monetary authority revised those for December downwards, up to 2.7%, equal to six tenths less than previous estimates.
For 2026 it forecasts unchanged GDP growth estimated at 1.6%, due to the reactivation of European fiscal rules, which will cause a brake on economic activity.
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