OECD Boosts Spain's Growth Outlook but Warns Inflation Remains a Threat

The Organisation for Economic Co-operation and Development (OECD) has raised its forecast for Spain's economic growth in 2026, citing a strong domestic demand and investment. The country is expected to grow by 2.6%, four tenths higher than the previous forecast, outperforming most other European countries.

However, the OECD warns that inflation remains a significant concern, with prices continuing to rise faster than in most of Europe. The consumer price index reached 4.3% in August, the highest since 2023, driven mainly by fuel costs. This is putting pressure on Spanish families' budgets, despite the expected economic growth.

The OECD now sees Spain's inflation averaging 3.7% this year, up four tenths from its June forecast, and expects it to remain high at 3.4% in 2027. Analysts point out that energy costs are a significant contributor to the price increases, which is having a major impact on the consumer price index.

The OECD's numbers show Spain leading the way in Europe, with its economy expected to grow faster than Germany, France, and Italy in 2026. However, this growth may not be felt by many families due to the high inflation rates.