It was the second straight outlook upgrade by the Bank of Spain so far this year following its initial forecast of a 1.9% expansion. Last year, the economy expanded 2.5%.
Growth is likely to slow down in the third quarter to 0.6% from the preceding three months, when the economy grew a stronger-than-expected 0.8%, the report said.
The central bank also raised the outlook for 2025 and 2026, to 2.2% and 1.9% from 1.9% and 1.7%, respectively.
As a result, the bank also reduced the debt-to-GDP ratio forecast to 105.4% at the end of this year from a previous 105.8%.
It now expects inflation to clock 2.9% this year, down from 3% predicted three months earlier, and then to gradually moderate to 2.1% and 1.8% in the following two years.
Source: Economy - investing.com
