Organisation for Economic Co-operation and Development

The Organisation for Economic Co-operation and Development (OECD) has updated its economic forecasts for Spain for the year 2024, with the following key points:

Growth Forecasts for Spain:

The OECD has slightly increased its growth forecast for Spain in 2024 by 0.1 percentage points to 1.5%, following a 2.5% growth in 2023.

It expects the Spanish economy to continue improving, with a projected growth rate of 2% by 2025.

Spain is highlighted as the best-performing major economy in the eurozone for this year and the next, being the only one to have its 2024 growth forecast revised upwards.

Eurozone Growth Projections:

For the eurozone, the OECD now predicts growth of 0.6% in 2024 and 1.3% in 2025. This represents a decline of 0.3 and 0.2 percentage points, respectively.

Germany’s forecast has been downgraded to 0.3% growth in 2024 and 1.1% in 2025, from the previously expected 0.6% and 1.2%.

France’s growth estimate for 2024 has been reduced by 0.2 percentage points to 0.6%, with the 2025 forecast remaining at 1.2%.

Italy’s growth forecasts are confirmed at 0.7% for 2024 and 1.2% for 2025.

Inflation Forecasts for Spain:

The OECD has revised Spain’s inflation forecast for 2024 down to 3.3%, a reduction of 0.4 percentage points, and increased the 2025 projection to 2.5% from 2.3%.

Core inflation in Spain is expected to decrease to 2.7% in 2024 from 4.1% in 2023, which is 0.4 percentage points lower than previously forecasted. By 2025, it is projected to further reduce to 2.1%, slightly lower than earlier estimates.

Eurozone Inflation Projections:

Headline inflation in the eurozone is projected at 2.6% for this year, down from the previously anticipated 2.9%, and is expected to decrease to 2.2% in 2025.

The underlying inflation rate in the eurozone is forecasted to fall to 2.6% in 2024, a decrease of 0.5 percentage points, and to 2.2% in 2025, slightly lower than earlier predictions.

These updates underscore the OECD’s view on Spain’s economic resilience and its positive outlook compared to the broader eurozone context.