Business · Economy · 14 hrs ago
Funcas forecasts slower Spanish growth from 2027 as inflation stays high
Funcas expects Spain’s economy to slow after this year, as prices remain high and households feel the strain.
The group forecasts growth of 2.5% in 2026, then 1.8% in 2027 and 1.7% in 2028.
It expects average inflation to reach 3.7% this year and 3.1% in 2027, before easing to 2.5% in 2028.
Higher interest rates and weaker momentum in tourism are also expected to weigh on growth.
Household spending is forecast to cool, while wages may not keep pace with prices and families have less savings to draw on.
The forecasts matter because slower growth and persistent inflation could squeeze consumers and businesses, while Funcas also warns that the slowdown could be sharper if migration flows weaken.
Funcas forecasts that Spain’s economy will grow more slowly from 2027 as persistent inflation and higher interest rates weigh on activity.
It projects gross domestic product growth of 2.5% in 2026, 1.8% in 2027 and 1.7% in 2028.
The think tank expects average inflation of 3.7% in 2026 and 3.1% in 2027.
It says household consumption and sectors such as tourism will lose momentum, while weaker European markets will limit export growth.
Funcas director general Carlos Ocaña said persistent inflation is the country’s main risk because it erodes household incomes and business competitiveness.
- Who
- Funcas, Spain’s savings-bank foundation and economic think tank.
- What
- It forecast slower Spanish economic growth from 2027 amid persistent inflation and higher interest rates.
- When
- The forecasts were presented on October 15, 2026.
- Where
- Spain; Funcas presented the forecasts at its headquarters in central Madrid.
- Why
- Persistent inflation, higher interest rates and weakening momentum in tourism and household demand are expected to weigh on growth.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- GDP growth forecast, 2026
- 2.5%
- GDP growth forecast, 2027
- 1.8%
- GDP growth forecast, 2028
- 1.7%
- Average inflation forecast, 2026
- 3.7%
- Average inflation forecast, 2027
- 3.1%
2 sources
What people are saying
The main risk for the country is persistent inflation that erodes household incomes and business competitiveness.
The problem is that there is a shortage of housing. There are two million more people in the country who need housing.