Bank of Spain Sees Stronger 2023 Growth After Good Start to Year

  • Central bank now predicts 2.3% rise in output, had seen 1.6%
  • Inflation to pick up in 2024 after sharp slowdown this year
Shoppers in Palma, Mallorca, Spain.Photographer: Andrey Rudakov/Bloomberg
Lock
This article is for subscribers only.

The Bank of Spain raised its economic growth forecast for 2023 to 2.3% from 1.6% as activity picked up more than expected at the start of the year, with energy costs easing and tourist visits on the rise.

Growth in the euro zone’s fourth-largest economy will likely remain above 2% until 2025 thanks to a recovery in consumer demand as price increases moderate and the labor market remains strong, the Spanish central bank said in its quarterly economic report released on Monday.