Bank of Spain to increase ’24 growth projection in June

The Bank of Spain is set to increase its 1.9 per cent growth forecast for the Spanish economy in 2024, according to a statement made by Central Bank Governor Pablo Hernandez de Cos on Tuesday, cited by Reuters.

This comes after Spain’s GDP grew by 0.7  per cent in the first quarter, outpacing other major European Union economies, largely due to the robust services sector, including a thriving tourism industry.

In March, the central bank raised its full-year forecast from the previously expected 1.6  per cent, aligning it more closely with the government’s projection of 2  per cent growth.

De Cos attributed this positive trend to strong employment performance, the stabilisation of geopolitical tensions, and further improvements in the tourism sector.

De Cos stated in his presentation of the central bank’s annual report, “With this information, in addition to that available for the second quarter, we can expect the Bank of Spain to revise its growth projections for the Spanish economy upwards for 2024 in its next update, which will take place in mid-June.”