MNI INTERVIEW: BOS Revises Up Spanish Growth, Inflation Stable

The Bank of Spain has revised up  its economic growth outlook by 0.3 percentage points for 2024 and 2025 to 3.1% and 2.5%, respectively in its December projections, while leaving inflation unchanged for both years  2.9% and 2.1%.

This year, growth was revised up due to an update from new data in the national accounts and a stronger than expected second half of the year. The 2025 revision benefits from a stronger last quarter of 2024 and the fiscal boost from support measures for the floods in Valencia.

Risks  the economy are tilted tp the downside and to upside for inflation due to the potential effects of the new US administration and political crisis in Germany and France. Growth for 2026 is unchaged at 1.9% and inflation was revised a touch to 1.7%.