Finance
Spain targets budget deficit of 2.1% of GDP in 2026
Published by Global Banking and Finance Review
Posted on November 18, 2025
1 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 18, 2025
1 min readLast updated: January 20, 2026
Spain plans to reduce its budget deficit to 2.1% of GDP by 2026, with economic growth projected at 2.9% this year, according to Economy Minister Carlos Cuerpo.
MADRID (Reuters) -Spain aims to achieve a budget deficit of 2.1% of its gross domestic product next year, down from 2.5% projected for this year, Economy Minister Carlos Cuerpo said on Tuesday.
The targets exclude billions of euros of additional reconstruction spending following last year's catastrophic flash floods in the Valencia region.
Cuerpo added the deficit target for 2027 was 1.8% of GDP.
On Monday, both the European Commission and the Spanish government said Spain's economy was projected to grow 2.9% this year - more than double the average pace in the European Union and exceeding the previous forecasts of 2.6-2.7%.
Next year, the government expects growth to decelerate to 2.2%, and remain at 2.1% both in 2027 and 2028, Cuerpo said.
"Spain continues to enjoy dynamic and resilient growth. Our differentiated response to the crises since the COVID-19 pandemic has allowed us to emerge unscathed," he added.
(Reporting by David Latona and Jesús Aguado; Editing by Andrei Khalip)
Economic growth refers to an increase in the production of goods and services in an economy over a period, typically measured by the rise in GDP.
Explore more articles in the Finance category