Spain: 2024 Article IV Consultation-Press Release; and Staff Report
IMF Staff Country Reports, June 6, 2024
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- Spain: 2024 Article IV Consultation-Press Release; and Staff Report
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Bibliographic details
- Published: June 6, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400277832.002
Economic performance and drivers
- Growth rate of 2.5 percent in 2023, reflecting remarkable resilience to elevated global uncertainty and tighter financial conditions.
- Robust services export performance and public consumption identified as the main drivers of recent growth.
- Spain’s banking system has shown resilience.
Private sector and labor market
- Strong economic and labor market performance and deleveraging have helped the private sector cushion the impact from rising interest rates.
- Pockets of vulnerability remain.
Projections
- Growth is projected to reach 2.4 percent in 2024.
- Growth is projected to reach 2.1 percent in 2025.
- Growth in 2024–25 is driven primarily by stronger domestic demand growth.
- Private consumption is expected to strengthen as the household saving rate normalizes gradually and real wage income continues to increase steadily.
Risks and uncertainty
- Uncertainty surrounding the outlook has become more balanced.
- Risks remain tilted to the downside for growth and to the upside for inflation.
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- 1espea2024001