Market Analysis

The Bank of Spain is anticipated to adjust its forecast for Spain's economic growth in 2024 upward from the current 1.9%, as hinted by central bank Governor Pablo Hernandez de Cos during his recent remarks. 

The Spanish economy demonstrated resilience in the first quarter, expanding by 0.7%, surpassing other major EU economies, chiefly propelled by the robust performance of the services sector, notably tourism. 

Previously, in March, the central bank had revised its annual forecast from 1.6% to align more closely with the government's projection of 2% growth. De Cos attributed this positive trend to factors such as employment stability, reduced geopolitical tensions, and further enhancement in tourism activity. 

Based on these factors, alongside data from the second quarter, it is anticipated that the Bank of Spain will announce an upward adjustment in its growth projections for 2024 during its forthcoming update in mid-June, as highlighted in the central bank's annual report presentation.

Paraphrasing text from "Reuters" all rights reserved by the original author.