The Bank of Spain estimates Spain’s economy expanded between 0.5% and 0.6% in the first quarter, signaling continued resilience.
Growth outpaced major euro zone peers, though it marked a slowdown from the 0.8% expansion recorded in the previous quarter.
The central bank slightly raised its 2026 growth forecast to 2.3%, reflecting updated assumptions on external conditions and domestic policy support.
Officials cited higher energy prices and weaker global demand as headwinds, partially offset by fiscal measures designed to stabilize economic activity.
Without external disruptions, growth projections could have reached 2.4%, highlighting the underlying strength of Spain’s economic momentum.
For 2027, GDP is expected to grow 1.7%, below earlier estimates, indicating a more cautious medium-term outlook.
Inflation forecasts were revised higher, with prices expected to rise 3% in 2026 and 2.5% in 2027, above prior projections.
Public finances are set to improve gradually, with the deficit narrowing and the debt-to-GDP ratio declining to 98.1% by 2027.
