Alex Trelinski
A TEAM of UK economists are forecasting that Spain will have a good 2025- in contrast to other EU countries.
Experts from Oxford Economics say that Spain will continue to ‘shine’ this year, as its economy ‘stands out clearly in a eurozone in crisis’.
“Spain has also reduced its long-standing macro-financial vulnerabilities and a better demographic outlook means we are more optimistic about the long-term economic growth than other peripheral economies,” says Oxford Economics.
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The consultancy looked back to 2024 when Spain was the world’s fastest growing economy.
“Growth is being driven by the service-oriented nature of its economy, the booming tourism sector and strong net migration flows,” it explained.
Spain’s economy grew by 3.2% in 2024- much higher than other eurozone countries- according to preliminary figures published by the National Statistics at the end of January.
In addition, Oxford Economics highlights that ‘favourable cyclical expansions were accompanied by important structural changes’.
“We now expect Spain to grow at a similar rate to the eurozone over the next decade, whereas before we thought it would be among the worst performing countries, along with other southern European economies, such as Greece and Italy,” the economists predicted.
Last month, the International Monetary Fund (IMF) raised its prediction of how far Spain’s economy will grow this year by 0.2% to 2.3%.
The eurozone in contrast has a growth projection for 2025 of just 1%.
According to the IMF, Spain is the only country among the advanced European economies where the growth forecast has improved.
Being a German citizen I highly appreciate that Spain is going to replace Germany as the main net spender for the financial funds of the European Union, while German economy is shrinking.
Always good to read positive news, and this is no exception. Just a word of caution. The Spanish economy is over reliant on tourism. Another Covid like situation or worsening of the anti tourist demonstrations will change things. A more balanced economy is something the government should strive for.