The Spanish government will raise its economic growth forecast for 2025 by two-tenths of a percentage point to 2.9% this Tuesday, sources from the Ministry of Economics have confirmed to EFE. Minister of Economics Carlos Cuerpo will present the macroeconomic framework update to the Council of Ministers on Wednesday, which will accompany the public deficit path that the government plans to approve. The growth and deficit figures are the basis for calculating the spending ceiling for the 2026 General State Budget, which will also be approved at the council meeting on Wednesday. The price Spain is starting to pay for growing twice as fast as Europe. Domestic demand is sustaining growth but is generating price tensions, which is causing a deterioration in Spain's competitiveness compared to the eurozone. The GDP growth revision comes two months after the government raised its forecast for 2025 by one-tenth to 2.7%, an update that took place just days before the National Statistics Institute (INE) revised the 2024 economic growth upwards to 3.5%. After the INE's correction, all forecasts from international and national bodies have been converging towards 3%. This is the case with the International Monetary Fund (IMF), which placed it at 2.9% in October, or with the Independent Authority for Fiscal Responsibility (AIReF), which raised its own to 3%. In September, the government left the expected growth for 2026 at 2.2%, a year for which a moderation in the pace of the economy's advance is expected, with the IMF placing it at 2% and AIReF at 2.1%, so it will have to be seen tomorrow if the Executive maintains the same figure.
