The Government will raise the growth forecast for this year by two tenths to 2.9%
The Government raises the growth forecast for this year by two tenths to 2.9%. As confirmed by sources from the Executive to Economic Information The improvement will be included tomorrow in the new macroeconomic table that will serve as the basis for the preparation of the General State Budgets of 2026 and that the Council of Ministers plans to approve together with the spending ceiling or non-financial spending limit.
The same sources indicate that the review occurs after incorporating the latest data from the National Statistics Institute (which has placed GDP growth at 0.6% in the third quarter and revised upwards that for 2024 to 3.5%) and in line with the improvements in estimates that have also been published by national and international organizations. The positive surprise has come from the side of domestic demand, from the rise in household consumption and the improvement in business investment in full deployment of Next Generation funds and with cheaper financing after the latest interest rate cuts.
This Monday the first vice president and Minister of Finance, María Jesús Montero, brings to the Fiscal and Financial Policy Council the new path of stability (the deficit, debt and spending rule objectives) that also serves as the axis for the Budgets. The meeting is marked by the protest by a majority of autonomies, those governed by the PPagainst the singular financing agreed with Catalonia and that the Executive has proposed extending to the rest. Although regional financing is not, in principle, the central topic of the meeting, the agenda does state that the “state of the situation” of the future reform of the distribution model will be addressed.
