The Bank of Spain has revised its economic growth forecast for 2025, lowering it to 2.4% from the previous estimate of 2.7%, as global trade tensions continue to weigh on the outlook. Despite the downward adjustment, Spain’s growth remains significantly higher than the eurozone average, according to Governor Jose Luis Escriva, who addressed a parliamentary committee. The central bank also reduced its growth projection for the following year to 1.8% from 1.9%. Escriva attributed the slowdown to weaker economic performance in other regions, driven by uncertainties surrounding trade disputes involving the United States, China, and Europe. The central bank’s updated macroeconomic scenario assumes moderate tariff increases and increased defense spending. Additionally, Spain’s inflation forecast for the year was slightly lowered to 2.4% from 2.5%.
— new from Reuters
