Spain Growth Forecast: Bank of Spain Revision
The Bank of Spain will revise its 2024 economic growth forecast downward,citing global uncertainty and geopolitical shifts as primary factors,as announced by Gov. José luis Escrivá. The current GDP estimate of 2.7% will undergo adjustment due to complex issues, including global demand contractions, stronger euro, and declining energy prices. Beyond the primary_keyword, these changes may lead to heightened trade tensions. Further, the government is set to scrutinize BBVA’s takeover bid for Sabadell, following the resignation of the director General of Economics. Could increased military spending impact Spain? News directory 3 brings you the latest on these financial developments. Discover what’s next for Spain’s economy.
Bank of Spain Adjusts Economic Growth Forecast Amid uncertainty
Updated June 08,2025
The Bank of Spain is expected to slightly lower its 2024 economic growth forecast,according to Gov. José Luis Escrivá. The current GDP estimation of 2.7% will be adjusted downward by a few tenths. Escrivá cited an uncertain global context as the primary reason, despite Spain’s internal economic strengths.
Escrivá acknowledged increasing complexities in the economic habitat, notably due to geopolitical shifts since the start of Donald Trump’s second presidential term in the U.S. Potential risks include a contraction in global demand, a stronger euro, and declining energy prices, which could reduce inflation in the short term. Conversely, increased military spending and trade tensions might increase medium-term price pressures.
Regarding defense spending, Escrivá noted that central bankers should not dictate public spending allocations. However, he added that Spain, facing fiscal constraints, might have some room to increase investments across various sectors, including defense.
Escrivá is scheduled to appear before the Economy Commission of the Congress of Deputies. This follows the resignation announcement of Ángel Gavilán, the Institution’s Director General of Economics, after the agency’s annual report omitted any mention of pension sustainability.
BBVA’s Sabadell OPA
Carlos San Basilio,president of the National Securities Market (CNMV),will also appear in Congress on Wednesday. Parliamentary groups are expected to question him about BBVA’s OPA (takeover bid) to Sabadell. While competition authorities have endorsed the OPA with conditions, the government must now decide whether to impose further conditions.
Josep Oliu, president of Sabadell, recently urged the government to consider the potential “damages” of the operation, arguing it “goes against customers.”
“The Sabadell project will give shareholders more value than if they accept the OPA,” Oliu said.
What’s next
The Spanish government will weigh the competitive and economic implications of BBVA’s takeover bid for Sabadell, considering potential impacts on customers and the broader financial landscape.