Published by Global Banking & Finance Review®
Posted on June 9, 2025
1 min readLast updated: January 23, 2026
Add as preferred source on GoogleThe Bank of Spain has reduced its 2025 growth forecast to 2.4% due to global trade tensions, though it remains above the euro zone average.
MADRID (Reuters) -Spain's central bank lowered its economic growth forecast for this year to 2.4% from 2.7% due to the global trade tensions, still well above the euro zone's average, Governor Jose Luis Escriva told a parliamentary committee on Monday.
The Bank of Spain also trimmed the growth outlook for next year to 1.8% from 1.9%.
Escriva attributed the slowdown from last year's 3.2% expansion to lower growth in other economies due to the uncertainty associated with the tariffs war involving the United States, China and Europe.
Escriva said the central macroeconomic scenario for Spain incorporated "moderate tariff increases and a fiscal boost in defence spending".
The European Central Bank has predicted growth across the common currency area averaging 0.9% in 2025 and 1.1% in 2026.
The Bank of Spain also lowered the inflation forecast for this year to 2.4% from 2.5%, Escriva said.
(Reporting by Jesús Aguado, editing by Inti Landauro)
The Bank of Spain has lowered its economic growth forecast for 2025 to 2.4% from 2.7% due to global trade tensions.
The growth outlook for next year has been trimmed to 1.8% from 1.9% by the Bank of Spain.
The slowdown from last year's 3.2% expansion is attributed to lower growth in other economies due to uncertainty from the tariffs war involving the United States, China, and Europe.
The Bank of Spain has also lowered the inflation forecast for this year to 2.4% from 2.5%.
The European Central Bank has predicted growth across the euro zone to average 0.9% in 2025 and 1.1% in 2026.
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