Spain: 2025 Article IV Consultation-Press Release; and Staff Report

Author: International Monetary Fund. European Dept.

2025 Article IV Consultation-Press Release; and Staff Report

Volume/Issue: Volume 2025 Issue 121

Publication date: June 2025

ISBN: 9798229012782

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Topics covered in this book

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Exports and Imports , Inflation , Labor , Economics- Macroeconomics , Public Finance , Employment , Housing , Inflation , Income , Labor markets , Labor force , Wages , Pension spending

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Summary

The Spanish economy has been performing strongly, propelled by services exports and labor force growth, including immigration. Growth is projected to reach2.5 percent in 2025, before slowing as its recent drivers normalize. The disinflation process is expected to continue, with headline and core converging close to the ECB’s target by end-2025. Most risks are to the downside, including from a further escalation of trade measures and domestic political fragmentation.