Published by Global Banking & Finance Review®
Posted on June 10, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleThe Bank of Spain forecasts a 0.5%-0.6% economic growth for Q2, adjusting the annual growth estimate to 2.4% due to global trade tensions.
MADRID (Reuters) -Spain's economy is likely to grow at a solid rate of between 0.5% and 0.6% in the second quarter from the previous three months when it expanded 0.6%, the central bank said on Tuesday, a day after it trimmed its longer-term outlook.
Bank of Spain Governor Jose Luis Escriva on Monday lowered this year's growth estimate to 2.4%, still well above the euro zone's average, from 2.7% expected previously, citing the impact of the global trade tensions.
"Looking ahead to the coming quarters ... the gradual slowdown in the Spanish economy is expected to continue despite the boost to activity that could come from higher defence and infrastructure spending in the EU," the central bank said in its full report on Tuesday.
The outlook was calculated under a central scenario with U.S. tariffs of 10% on European goods and no retaliation, said the Bank of Spain's chief economist, Angel Gavilan.
Under a more pessimistic scenario of 20% tariffs retaliated by the European Union, Spain's economy would grow just 2% this year and slow down to about half that pace in 2026.
The EU already faces 25% U.S. import tariffs on its steel, aluminium and cars, and the so-called "reciprocal" tariffs of 10% for almost all other goods, a levy that would rise to 20% after a 90-day pause is set to expire in July.
(Reporting by Jesús Aguado, editing by Andrei Khalip)
The Bank of Spain estimates that the economy will grow between 0.5% and 0.6% in the second quarter.
The Bank of Spain lowered its growth estimate for the year from 2.7% to 2.4%.
The outlook is influenced by potential U.S. tariffs on European goods and the expected slowdown in the Spanish economy.
Higher defense and infrastructure spending could provide a boost to economic activity.
Explore more articles in the Finance category
