the government Raises growth forecast for this year by twenty percent to 2.9%. As confirmed by executive sources Economic information The improvement will be included tomorrow in the new macroeconomic table that will serve as the basis for preparing the state’s general budget for 2026, which the Council of Ministers intends to approve along with the spending ceiling or non-financial spending limit.
The same sources indicate that the review is underway After incorporating the latest data from the National Institute of Statistics (which put GDP growth at 0.6% in the third quarter and revised the rate upward for 2024 to 3.5%), in line with improvements in estimates also published by national and international organizations. The positive surprise came from the domestic demand side, from higher household consumption and improved business investment in the full deployment of next generation money and with cheaper financing after recent interest rate cuts.
This Monday, First Vice President and Minister of Finance, María Jesús Montero, presents to the Council for Fiscal and Fiscal Policy (CPFF) the new stabilization path (deficit and debt targets and spending base) that also serves as the pivot for budgets. The meeting was distinguished by: In protest by the autonomous majority, those ruled by the People’s Partyin exchange for the individual funding agreed upon with Catalonia, which the executive authority proposed to expand to include the rest.
Although regional financing is not, in principle, the main topic of the meeting, the agenda includes it will address the “situation” Future reform of the distribution model. The members of the popular councils staged a “shock” at the previous meeting of the CPFF, held on February 26, when they left the secret meeting just one hour after it began.
Expectations of upward revision cascades
Just two months ago, the government raised its growth estimate for this year by a tenth, to 2.7%. The update came days before the National Statistical Institute (INE) published its 2024 growth revision and its correction to 3.5%. New GDP projections and debt projections are essential as they help in developing the spending ceiling.
The Funkas Committee, which includes the country’s top analysts, raised its GDP forecast last week to 2.9%. This was after the International Monetary Fund in October placed its accounts at the same level, and the Independent Authority for Fiscal Responsibility (AIReF), the body that oversees budget policies, improved its estimate to 3%.
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