Spain’s economy is expected to grow between 0.5% and 0.6% in the second quarter, following a 0.6% expansion in the previous quarter, according to the Bank of Spain. Despite trimming its annual growth forecast to 2.4% from 2.7%, the bank remains optimistic about Spain’s economic resilience amidst global trade tensions. The central bank anticipates a gradual slowdown but notes potential boosts from increased defense and infrastructure spending within the EU. Under a scenario involving U.S. tariffs of 10% on European goods, Spain’s economy is projected to maintain steady growth. However, a more adverse scenario with 20% tariffs could slow growth to 2% this year and further in subsequent years. The EU currently faces significant U.S. import tariffs, which may escalate after a temporary pause expires in July.
— new from Reuters
