Bank of Spain expects Spanish economy to grow faster than eurozone in 2023-2025

Bank of Spain

Banca March: Pablo Hernández de Cos, Governor of the Bank of Spain, expects the Spanish economy to grow faster than the eurozone as a whole in the short and medium term. According to the ECB’s projections, Spain will record GDP growth of 2.3% in 2023, 1.8% in 2023 and 2% in 2024 compared to the euro zone (0.7%, 1% and 1.5%, respectively). De Cos lists the various reasons why the country is experiencing this acceleration compared to other major European economies: the sectoral composition, in which services account for a significant weight in Spain (75%), with a lower relative importance of manufacturing industry (18%). Likewise, less dependence on key exports such as Chinese exports and Russian gas have contributed to the fact that the drag from the Chinese economy and the energy crisis have had a lesser impact. On the other side of the coin, high interest rates may be a burden on Spanish households, as a result of the 70% of variable rate mortgages.

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