European Commission raises its growth forecast for Spain in 2019 to 2.3%

The European Commission has forecast Gross Domestic Product (GDP) growth in Spain of 2.3% in 2019 and 1.9% in 2020. Growth in the Eurozone remains steady at 1.2% of GDP this year and has been downwardly revised by 0.1% to 1.4% in 2020.

Spain is the only major Eurozone economy whose growth forecast has been upwardly revised, and the reason for this is the dynamic nature of economic performance recorded in the first part of the year. This means Spain will continue to lead Eurozone growth with a rate that, according to the forecast, will practically double that of the Eurozone as a whole (2.3% compared with 1.2%).

For 2020, the European Commission is maintaining its growth forecast of 1.9% for Spain while lowering the figure for the Eurozone as a whole, Germany and France by 0.1%, all from the 1.5% GDP growth figure forecast in spring to 1.4% now.

These estimates reflect the good health of the Spanish economy, which was also highlighted by the Bank of Spain in June and its 2019 GDP growth forecast increase to 2.4%.

The European Commission has also revised its inflation forecasts for 2019 and 2020. In Spain, year-on-year growth by the harmonised CPI has been downwardly revised by 0.2% for each year to 0.9% and 1.2%, respectively.

For the Eurozone as a whole, the inflation forecasts have also been downwardly revised by 0.1% for each year to 1.3% in 2019 and 2020.

Non official translation