The Spanish economy is expected to grow 2.9% this year, at more than double the average pace in the European Union and exceeding the previous forecasts of 2.6-2.7%, the European Commission and the Spanish government said.
The EU's executive arm said gross domestic product in the 20 countries that share the euro currency would grow 1.3% this year, rather than 0.9% as forecast last April, while the whole bloc's GDP would expand 1.4%. It raised its estimate for Spain from 2.6%, citing strong domestic demand.
"The government will raise its forecast to 2.9%, in line with the European Commission," Economy Minister Carlos Cuerpo told a parliamentary hearing.
The government had in September upgraded the growth forecast to 2.7% from 2.6%, predicting a positive outlook until 2028. The EU estimates Spain's economy will grow 2.3% in 2026, but Cuerpo said the government would stick to a 2.2% forecast.
He also said the government would present a new indicator within its economic targets that would link macro- and microeconomic data to measure how Spain reduces inequality and poverty levels, making sure that "growth figures translate into the daily lives of households".