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Spain expects solid average GDP growth above 2% through 2027



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Adds quotes from Cuerpo in paragraph 2 and 5 and deficit forecast in 7

MADRID, July 16 (Reuters) -Spanish Economy Minister Carlos Cuerpo on Tuesday forecast "stable and robust" economic growth for the country at an annual average rate above 2% through 2027, likely outpacing Spain's European peers.

"Spain will be the engine of growth in the EU not only in the short term, but also in the future," he told reporters.

The economy is on track to grow 2.4% this year and 2.2% in 2025, more than initially expected, as a result of strong data during the first half of 2024, Cuerpo has said earlier.

Cuerpo said not only tourism was performing well but that Spain was beginning to spot a progressive modernisation of its economy with an increase in non-tourism exports.

"The Spanish economy will continue to grow at a fast pace," he added.

As a result, the budget deficit would narrow to close to 3% of GDP this year and drop further in the coming years, Budget Minister Maria Jesus Montero added, bringing the debt-to-GDP ratio to below 100% by 2027. The ratio is expected to gradually drop from 105.1% projected for this year to 99.7% in 2027.

The government expects to reduce public deficit to 2.5% of GDP in 2025 and fall further in 2026 and 2027.



Reporting by Inti Landauro. Writing by Emma Pinedo, editing by Andrei Khalip, Alexandra Hudson

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