The Bank of Spain raises its GDP growth forecast to 2.3%. This was stated by the agency in its recent publication of macro projections, in which its GDP forecast for Spain for the current year rises from 1.6% to 2.3%. It also expects inflation to fall faster than expected this year, to close at 3.2% on average, as well as forecasting growth above 2% every year until 2025. On the negative side, the gap with Europe generated from Covid-19 will remain latent, and it does not expect it to close until 2026, while it also warns of signs of “weakening” in the face of the lower employment growth seen in May and the slowdown in the EU economy, currently in technical recession.
Source: BancaMarch, June 2023