Bank of Spain Keeps 2026 Growth at 2.3% as Inflation Forecast Rises to 3.6%
Updated
Updated · Reuters · Jun 18
Bank of Spain Keeps 2026 Growth at 2.3% as Inflation Forecast Rises to 3.6%
3 articles · Updated · Reuters · Jun 18
Summary
Spain’s central bank left its 2026 GDP growth forecast unchanged at 2.3%, saying the economy likely expanded 0.5%-0.6% in the second quarter after 0.6% growth in the first.
Domestic demand has lost momentum, the bank said, while the external sector supported growth mainly because imports fell faster than exports.
Energy-price gains linked to the Middle East war pushed the 2026 inflation forecast up to 3.6% from 3.0%, with 2027 inflation nudged to 2.6% from 2.5%.
The bank also raised its 2026 budget deficit view to 2.4% from 2.3%, though it still sees the gap below 2025’s 2.5% and debt easing to 97.9% of GDP by end-2027.
Spain continues to outpace larger euro zone peers, helped by tourism, consumption and immigration, even as the ECB sees the wider bloc growing just 0.8% in 2026.