The Bank of Spain raises its GDP growth forecast to 2.6% this year and 2.2% in 2027, but worsens its inflation outlook.

The Banco de España has revised its economic projections for Spain, increasing its GDP growth forecast for the current year to 2.6%. The central bank also adjusted its 2027 outlook upward to 2.2%, citing the resilience of private consumption, robust job creation, and population growth as primary drivers for these improvements.

Despite the positive growth trajectory, the institution has simultaneously signaled a deterioration in inflation expectations. The updated forecast highlights a complex economic environment where strong domestic demand supports output expansion while inflationary pressures remain a concern for the medium term.