Spain expects its economy to grow by 2.6% in 2026, up from a prior forecast of 2.2% annual growth, the Economy Ministry said on Monday.
The ministry also said it sees the economy growing by more than 2% each year until 2029.
Spain has been an outlier among European economies, outpacing peers that have seen slowdowns in growth over the past few years in the wake of the 2022 invasion of Ukraine.
Economy Minister Carlos Cuerpo was set to offer more details on the revised figures at a news conference later on Monday. The government's new forecast is a requirement for it to submit the state budget for 2027.
Earlier on Monday, the National Statistics Institute posted preliminary data that showed EU-harmonised 12-month inflation remaining unchanged in the 12 months through May despite the energy supply crisis triggered by the partial closure of the Strait of Hormuz during the U.S.-Israeli war on Iran.
This was partly due to anti-inflation measures contained in a €5 billion ($5.7 billion) package passed in March to counter the impact of the Middle East conflict on local prices, including tax cuts and fuel subsidies.
Madrid is expected to extend some of the measures on Monday following a cabinet meeting.
($1 = 0.8774 euros)