Spain’s economy is poised for a significant growth spurt, with revised forecasts pointing to a 2.4% expansion in 2024 and 2.2% in 2025. This upward adjustment follows a strong performance in the first half of 2024, driven by positive economic indicators. The government initially projected growth of 2% for 2024 and 1.9% for 2025.
Economy Minister Carlos Cuerpo attributed the optimistic outlook to a combination of factors, including low unemployment rates, robust investment levels, and a thriving tourism sector. Spain’s economy outpaced other major European economies in the first quarter, growing by 0.8%. This strong performance reinforces the resilience of the eurozone’s fourth-largest economy.
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The positive economic momentum is expected to translate into improved fiscal conditions. The budget deficit is projected to shrink to 3% of GDP in 2024 and continue to decrease in 2025. This positive trajectory is poised to bring Spain’s debt-to-GDP ratio below 100% by 2027.