Pablo Hernandez de Cos, governor of Spain's central bank and European Central Bank policymaker, said the Central Bank may improve its forecast for Spanish GDP growth for the current year, which currently stands at +1.9%. The last time the Central Bank raised its forecast in March, from +1.6% to +1.9%, bringing it more in line with the government's projection of 2% growth. Updated forecasts will be published in mid-June.
According to official data, the Spanish economy grew by 0.7% in the first quarter, positively surprising analysts who predicted growth of between 0.4% and 0.6%. Household consumption and tourism were - once again - the levers contributing to the growth of GDP during the first part of this year. Growth of 0.7% from January to March equals the good closing of the fourth quarter of 2023, ensuring GDP growth of 2.5% last year, even above the government's forecasts.
De Cos stated that the improvement in the economic outlook is due to good employment figures, stabilization of geopolitical tensions and additional improvement in activity in the tourism sector.