Spain's Economy Forecasted to Grow 2.7% in 2025

Spain's Economy Forecasted to Grow 2.7% in 2025

Madrid, 18 April 2025 — The Bank of Spain has revised its economic growth forecast for 2025, projecting a 2.7% increase in GDP. This adjustment from the previous 2.5% estimate is attributed to robust private consumption and increased household incomes.

Despite a slight deceleration from the 3.2% growth recorded in 2024, Spain's economy continues to outperform other major eurozone countries, such as France, Germany, and Italy, which anticipate growth rates around or below 1%.

Key factors contributing to this optimistic outlook include:

• Private Consumption: Elevated household incomes are expected to boost consumer spending.
• Labour Market: Continued job creation supports economic expansion.
• Investment: Anticipated increases in housing construction and equipment investment.

However, the Bank of Spain cautions about potential challenges, including geopolitical uncertainties and demographic aging, which could impact long-term growth.

For residents and investors, this forecast suggests a favorable economic environment in Spain, with opportunities arising from sustained growth and consumer confidence.