Economic Growth Projections for 2025
The Mastercard Economic Institute (MEI) has released its “Economic Outlook 2025” report, which provides insights into the global economy and key trends in 74 markets, including Spain. According to the report, Spain is expected to experience significant economic growth in 2025, outpacing the eurozone.
Key Findings
* The global economy is expected to accelerate to 3.2% in 2025, while the eurozone will experience a more modest growth rate of 0.9%.
* Spain’s GDP growth is projected to be 1.9% in 2025, driven by a combination of factors including lower interest rates, increased consumer spending, and a strong tourism sector.
* Inflation in Spain is expected to remain at 2%, while consumption will continue to resist despite the establishment of a more restrictive fiscal policy at the community level.
Consumer Behavior in 2025
The MEI report highlights several key trends in consumer behavior in 2025, including:
* Moderate acceleration of growth in Europe, driven by lower interest rates and increased consumer spending.
* Continued maintenance of consumption in Europe, despite tightening fiscal policies and trade uncertainty.
* Increased popularity of more affordable tourism alternatives in Europe, with price-conscious tourists opting for less expensive or less crowded destinations.
* A focus on experiences and “great moments,” with spending on experiences and high-value items expected to remain stable.
* The rise of the “SHEconomy,” with women returning to work and driving growth in the labor market.
Summary 2024: Spaniards Prioritize International Tourism
The MEI report also highlights several key trends in Spain in 2024, including:
* European consumers, including Spaniards, remain price sensitive, opting for cheaper products and services rather than high-end ones.
* Spaniards are prioritizing international tourism, with more trips taken abroad than within the country.
* Price sensitivity has decreased in certain sectors, such as restaurants, reflecting increased consumer confidence.
Expert Insights
Natalia Lechmanova, Chief Economist in Europe at the Mastercard Economic Institute, notes that “Europe’s economic growth will accelerate modestly in 2025, supported by lower interest rates, but will remain weak as tightening fiscal policy and trade uncertainty act as headwinds.”
Juan Pablo Vivas, General Director of Mastercard Spain, adds that “the data offered by the Mastercard Economic Institute report place Spain in a very favorable position to face 2025, not only in macroeconomic terms, but also due to the spending behavior that we are seeing in the last part of the year among Spanish consumers.”