Madrid. The government has raised the country’s economic growth forecast for 2025 to 2.7 percent from 2.6 percent, thanks to good trends in consumption and investment.

Finance Minister Carlos Cuerpo called it a “cautious assumption” and said the economy was recovering from a “strong state”.

“This amendment is a testament to the strength of our economy,” he said. Spain became the world’s fastest-growing developed country in 2024 and this pace is expected to continue in 2025.

Spain’s central bank also raised its economic growth forecast for 2025 to 2.6 percent from 2.4 percent. The main reason for this is the stability in production and demand.

In the second quarter of 2025, Spain’s gross domestic product (GDP) grew by 0.7 percent, well above the eurozone average of 0.1 percent. Spain’s economy grew by 3.2 percent in 2024.