Latest news with #BankofSpain
Yahoo
2 hours ago
- Business
- Yahoo
Bank of Spain sees economic growth at 0.5%-0.6% in second quarter
MADRID (Reuters) -Spain's economy is likely to grow at a solid rate of between 0.5% and 0.6% in the second quarter from the previous three months when it expanded 0.6%, the central bank said on Tuesday, a day after it trimmed its longer-term outlook. Bank of Spain Governor Jose Luis Escriva on Monday lowered this year's growth estimate to 2.4%, still well above the euro zone's average, from 2.7% expected previously, citing the impact of the global trade tensions. "Looking ahead to the coming quarters ... the gradual slowdown in the Spanish economy is expected to continue despite the boost to activity that could come from higher defence and infrastructure spending in the EU," the central bank said in its full report on Tuesday. The outlook was calculated under a central scenario with U.S. tariffs of 10% on European goods and no retaliation, said the Bank of Spain's chief economist, Angel Gavilan. Under a more pessimistic scenario of 20% tariffs retaliated by the European Union, Spain's economy would grow just 2% this year and slow down to about half that pace in 2026. The EU already faces 25% U.S. import tariffs on its steel, aluminium and cars, and the so-called "reciprocal" tariffs of 10% for almost all other goods, a levy that would rise to 20% after a 90-day pause is set to expire in July. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Sun
2 hours ago
- Business
- The Sun
US tariff uncertainty hits Spain GDP forecast
MADRID: Uncertainty from US President Donald Trump's tariffs, and the risk they bring a global slowdown, forced Spain's central bank on Tuesday to downgrade its 2025 economic growth forecast. It predicted Spain's economy would grow 2.4 percent this year, down from a previous forecast of 2.7 percent. The Bank of Spain said a 'small slowdown in the pace of GDP growth' was expected over the second half of 2025. It also lowered its 2026 forecast from 1.9 percent to 1.8 percent. The recalculations were due to 'heightened uncertainty' for the world economy, the bank said. Markets 'remain very vulnerable to possible negative disruptions that could arrive in coming weeks', it said, noting that dipping confidence would likely have 'a negative impact on consumption'. While the Bank of Spain said that negotiations the United States was holding with major trading partners held out hope of 'de-escalation', it did not rule out 'an intensification of the trade war'. Spain is part of the eurozone. In its own forecasts given at the end of last year -- before Trump took office and subsequently announced the higher US tariffs -- the European Commission forecast 2.6 percent growth for Spain this year.
Business Recorder
2 hours ago
- Business
- Business Recorder
Bank of Spain sees economic growth at 0.5%-0.6% in second quarter
MADRID: Spain's economy is likely to grow at a solid rate of between 0.5% and 0.6% in the second quarter from the previous three months when it expanded 0.6%, the central bank said on Tuesday, a day after it trimmed its longer-term outlook. Bank of Spain Governor Jose Luis Escriva on Monday lowered this year's growth estimate to 2.4%, still well above the euro zone's average, from 2.7% expected previously, citing the impact of the global trade tensions. 'Looking ahead to the coming quarters … the gradual slowdown in the Spanish economy is expected to continue despite the boost to activity that could come from higher defence and infrastructure spending in the EU,' the central bank said in its full report on Tuesday. The outlook was calculated under a central scenario with U.S. tariffs of 10% on European goods and no retaliation, said the Bank of Spain's chief economist, Angel Gavilan. Bank of Spain warns of slowing lending income growth Under a more pessimistic scenario of 20% tariffs retaliated by the European Union, Spain's economy would grow just 2% this year and slow down to about half that pace in 2026. The EU already faces 25% U.S. import tariffs on its steel, aluminium and cars, and the so-called 'reciprocal' tariffs of 10% for almost all other goods, a levy that would rise to 20% after a 90-day pause is set to expire in July.
Reuters
3 hours ago
- Business
- Reuters
Bank of Spain sees economic growth at 0.5%-0.6% in second quarter
MADRID, June 10 (Reuters) - Spain's economy is likely to grow at a solid rate of between 0.5% and 0.6% in the second quarter from the previous three months when it expanded 0.6%, the central bank said on Tuesday, a day after it trimmed its longer-term outlook. Bank of Spain Governor Jose Luis Escriva on Monday lowered this year's growth estimate to 2.4%, still well above the euro zone's average, from 2.7% expected previously, citing the impact of the global trade tensions. "Looking ahead to the coming quarters ... the gradual slowdown in the Spanish economy is expected to continue despite the boost to activity that could come from higher defence and infrastructure spending in the EU," the central bank said in its full report on Tuesday. The outlook was calculated under a central scenario with U.S. tariffs of 10% on European goods and no retaliation, said the Bank of Spain's chief economist, Angel Gavilan. Under a more pessimistic scenario of 20% tariffs retaliated by the European Union, Spain's economy would grow just 2% this year and slow down to about half that pace in 2026. The EU already faces 25% U.S. import tariffs on its steel, aluminium and cars, and the so-called "reciprocal" tariffs of 10% for almost all other goods, a levy that would rise to 20% after a 90-day pause is set to expire in July.
The Star
17 hours ago
- Business
- The Star
Bank of Spain cuts growth forecasts amid U.S. tariff uncertainty
MADRID, June 9 (Xinhua) -- The Bank of Spain has revised downward its economic growth forecasts for the country, cutting the projection for 2025 from 2.7 percent to 2.4 percent, and that for 2026 to 1.8 percent, due to uncertainty stemming from U.S. tariff policies. Jose Luis Escriva, the bank's governor, made the announcement on Monday during a speech to parliament's economic commission, ahead of the publication of the bank's quarterly report on the Spanish economy, scheduled for June 10. Escriva used the word "uncertainty" no fewer than 18 times in his speech, underlining that while Spain's direct trade exposure to the U.S. is lower than that of other major European Union economies, the country is indirectly vulnerable, particularly in sectors such as chemicals, due to its integration into global value chains. He also warned that prolonged uncertainty could increasingly weigh on Spain's economy. He noted that uncertainty remains the major concern for businesses, with many Spanish companies reporting impacts from the tariffs. Despite the downgraded growth forecast, the bank has retained its projection for the unemployment rate in 2025 at 10.5 percent, while slightly improving the estimate for 2026, lowering it to 10.2 percent from the previous report.
