IMF revises Spain growth downwards for 2026 and 2027

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.



According to the IMP the Spanish economy has continued to perform strongly, expanding significantly faster than euro area peers.



It also added 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.



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.