Investing.com -- The Spanish economy is predicted to grow between 0.5% and 0.6% in the second quarter, according to a statement from the country’s central bank on Tuesday.
This follows a 0.6% expansion in the previous quarter.
On Monday, Bank of Spain Governor Jose Luis Escriva adjusted the year’s growth estimate to 2.4%, a reduction from the previously expected 2.7%.
Despite this downward revision, Spain’s growth rate remains notably higher than the average of the euro zone. Escriva attributed this adjustment to the ongoing global trade tensions.
In its comprehensive report published Tuesday, the central bank projected the Spanish economy’s gradual slowdown to continue in the upcoming quarters. This is despite potential boosts in activity from increased defense and infrastructure spending within the European Union.
The bank’s chief economist, Angel Gavilan, stated that these predictions were calculated under a central scenario. This scenario assumes a 10% U.S. tariff on European goods and no retaliatory action.
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