The European Commission has revised its GDP forecasts for Spain, now predicting a robust 3% growth in 2024, up from the previous estimate of 2.5% for 2023.

According to the National Institute of Statistics (INE), Spain's economy grew by 0.8% between July and September 2024, marking a significant 3.3% increase compared to the same period in 2023.

Spain's growth estimates surpass those of the broader European economy, with the eurozone projected to grow by only 0.8% this year and 1.3% in 2025, while the EU as a whole anticipates a 0.9% growth this year and 2.5% in 2025.

Household consumption in Spain rose by 1.2%, and public administration consumption increased by 2.5%, as reported by INE.

The growth during Spain's summer months was primarily driven by internal consumption, which contributed 2.8 percentage points to the economy's overall advancement.

The Bank has emphasized that growth in 2024 and 2025 will be largely supported by domestic demand, particularly private consumption, thanks to positive trends in disposable income and the labor market.

While investment remains the weakest component of domestic demand, it is expected to contribute more to GDP growth in the coming quarters, aided by the execution of European funds and improved financing conditions.

In the second quarter of 2024, Spain's GDP also saw a quarter-on-quarter increase of 0.8% and a year-on-year rise of 3.2%.

This positive revision of Spain's economic outlook aligns with forecasts from the Spanish government and international entities, reflecting strong economic performance in the latter half of the year.