IMF lowers Spain’s growth outlook, citing global risks and slower momentum despite strong performance versus eurozone peers

MADRID: The International Monetary Fund revised downwards its economic growth forecast for ⁠Spain for 2026 and 2027.

The IMF said in a ​statement on Friday it ‌expects GDP growth to ​moderate this year to 2.1% from 2.8% in 2025, a downward revision of two-tenths ​of a percentage point compared to ⁠the forecast ‌in ​January.

For 2027, ​it anticipates growth of 1.8%, ​one-tenth of a percentage point lower than previously projected.

“The Spanish economy has continued to perform strongly, expanding significantly ‌faster than euro area peers,” the IMF said.

“Notwithstanding the adverse effect and heightened uncertainty from the conflict in the Middle East, ⁠growth ‌is expected to stay solid this year, before slowing gradually as immigration inflows ​moderate and demographic aging intensifies.”

It added: “Risks ​are ​on the downside, including ‌from ​a lengthy Middle East conflict, an escalation of other geopolitical tensions and trade measures, and domestic ​political fragmentation.”

 The Sun Malaysia