Spain’s Economy Ministry said the government has raised its 2026 GDP growth forecast to 2.6% from 2.2% in an updated macroeconomic framework required for preparation of the 2027 national budget.
The ministry also said it expects economic growth to remain above 2% each year through 2029. The revision was issued against a backdrop of energy-market uncertainty linked to the Middle East conflict and disruption to traffic through the Strait of Hormuz.
June inflation in Spain was reported at 3.2%, unchanged from April and May, as higher electricity and gas prices were offset by lower gasoline and diesel prices. Government sources also indicated that some support measures to limit the impact of higher energy costs remain in force, including a reduced 10% VAT rate on fuels.