Bank of Spain ups growth forecasts despite impact from floods

[ASFN Admin]

You must be registered for see images attach

Spain's central bank on Tuesday raised this year's economic growth estimate despite the negative impact of catastrophic floods in October and a slowdown in the wider euro zone, also upping the forecast for 2025 thanks to reconstruction spending. In the fourth quarter alone, GDP should grow 0.6%-0.7% from the previous quarter, when the expansion was 0.8%, slowing down mainly because of the negative impact of the floods that killed more than 220 people in eastern Spain in late October and washed away homes, roads and other infrastructure. The spending to rebuild the area around Valencia is likely to cost the equivalent to 0.5% of GDP, mainly this year, when the central bank expects a higher budget deficit of 3.4% than 3.3% forecast earlier.

Continue reading...