MADRID (Reuters) -Spain's central bank lowered its economic growth forecast for this year to 2.4% from 2.7% due to the global trade tensions, still well above the euro zone's average, Governor Jose
Bank of Spain Adjusts 2025 Growth Forecast to 2.4% Amid Trade Issues
MADRID (Reuters) -Spain's central bank lowered its economic growth forecast for this year to 2.4% from 2.7% due to the global trade tensions, still well above the euro zone's average, Governor Jose Luis Escriva told a parliamentary committee on Monday.
The Bank of Spain also trimmed the growth outlook for next year to 1.8% from 1.9%.
Escriva attributed the slowdown from last year's 3.2% expansion to lower growth in other economies due to the uncertainty associated with the tariffs war involving the United States, China and Europe.
Escriva said the central macroeconomic scenario for Spain incorporated "moderate tariff increases and a fiscal boost in defence spending".
The European Central Bank has predicted growth across the common currency area averaging 0.9% in 2025 and 1.1% in 2026.
The Bank of Spain also lowered the inflation forecast for this year to 2.4% from 2.5%, Escriva said.
(Reporting by Jesús Aguado, editing by Inti Landauro)
