The new governor of the Bank of Spain (BdE), José Luis Escriva, made his debut by presenting good economic projections for the country. The Bank of Spain increased by five tenths, to 2.8%its forecast for gross domestic product (GDP) growth for this 2024, and has reduced by one tenth the average inflation rate for the current year, until 2.9%This was announced this Tuesday in the entity’s economic projections for the third quarter of the year.
The entity’s quarterly economic report, published this Tuesday, explains that the new statistical information available from the national accounts weighed 0.4 percentage points in the upward revision of growth forecasts for this year, while the better prospects on the evolution of the external sector contributed with the remaining 0.1 points.
In its report, the Bank of Spain highlights that in recent months, “global economic activity has maintained a robust pace of expansion” similar to that of the previous quarter, while inflation has continued its “deceleration trajectory.” In addition, they point out, there are “signs of easing of tensions in the labor markets of the main advanced economies.” All this has led to the easing of monetary policies by central banks, such as the European one, which has lowered interest rates for the second time.
All this and in relation to the projections of June, arrives at the banking organization, review up he GDP growth up to 2.8% in 2024, 2.2% in 2025 and 1.9% in 2026—, “while no substantial change is incorporated in the gradual moderation path that inflation would follow,” the report said.
Regarding external demand, he said that the growth of tourist exports has slowed less than expected, while imports have been “relatively weak” in recent quarters due to less energy dependence on foreign sources.
On the other hand, the public deficit will close at 3.3% of GDP in 2024 and will decrease slightly to 3.1% in 2025 and 3.2% in 2026, while the public debt will increase again in 2026, to 106.3% of GDP in a context in which the new budgetary rules will impose a budgetary adjustment of 0.5 percentage points of GDP per year, underlines the entity.
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