Brussels predicts that the Spanish economy will grow by 1.7% in 2024, double that of the eurozone

According to the European Commission’s winter economic forecast report, the Spanish economy is expected to grow by 1.7% in 2024 and reach 2% in 2025. If this forecast materializes, Spain’s GDP would outpace that of the eurozone, which is expected to grow by only 0.8% this year. In addition, Spain’s economy would surpass the three largest European economies in 2024 and 2025.

The report also predicts that inflation in Spain will continue to moderate, with consumer prices expected to rise by 3.2% on average in 2024, slightly lower than the previous year. By 2025, inflation is projected to be around 2%, aligning with the objective set by the European Central Bank (ECB).

While the forecast suggests that Spain will maintain a considerable level of growth compared to other member states, it also highlights that the national economy will lose momentum this year compared to 2023 when GDP grew by 2.5%. Factors such as a slowdown in tourism and a decline in exports due to the weakness of Spain’s European partners, along with the impact of rising interest rates and high debt levels, will contribute to this slowdown.

Despite these challenges, employment growth is expected to slow down but still contribute to sustaining economic growth. Spain’s economic growth in the next two years will depend on factors such as consumption, which relies on the recovery of workers’ purchasing power, and investment, which hinges on the successful execution of European recovery funds.

In contrast, other eurozone countries face more modest growth expectations. Germany, representing 30% of the eurozone’s GDP, is forecasted to grow by only 0.3% in 2024 and 1.2% in 2025. France’s growth forecast for 2024 has been lowered to 0.9%, while Italy is expected to experience moderate growth of 0.7% in 2024 and 1.2% in 2025.