BARCELONA, Spain, April 8 (Xinhua) -- The Spanish economy enjoys a positive outlook in the coming years, Javier Vazquez, associate professor of economics at the University of Barcelona, told Xinhua in an interview on Monday.
"What's expected this year is for economic growth to be slightly lower at about 2 percent, but that will be higher than the growth in Europe as a whole," Vazquez said, adding that Spain will continue to be one of Europe's fastest-growing economies.
At 2.5 percent, economic growth in Spain exceeded expectations last year, while the Bank of Spain this month raised its forecast for GDP growth in 2024 from 1.6 to 1.9 percent. In comparison, the European Central Bank (ECB), in its March projections, cut this year's economic growth forecast for the euro area from 0.8 percent to 0.6 percent.
One of Spain's leading economic forecasters, BBVA Research, also raised its GDP growth forecast for 2024 in March, from 1.5 to 2.1 percent, citing lower inflation and the strength of the country's service exports among the reasons for the adjustment.
Meanwhile, the professor noted that lower energy costs, which incentivize production and internal consumption, have also contributed to Spain's economic growth.
GDP growth is expected to rally in 2025 in Europe as a whole, as inflation continues to fall. The Bank of Spain predicts a 1.9-percent economic growth for the country in 2025, higher than the 1.7-percent forecast by the EU for next year.
"In the mid-term, over the next couple of years, the perspectives are good for the Spanish economy, but at the same time dependent on a very uncertain international context, which we have seen can change extremely quickly," Vazquez added.
Despite the positive outlook for Spain, there is still work to do in a number of areas, not least addressing the Spanish economy's "Achilles' heel" of "very low productivity," the expert warned.
"Apart from improving productivity, one area that needs attention -- and which all recent governments have said they want to tackle -- is reducing the bureaucracy that companies deal with," he concluded. ■