MADRID (Reuters) -Spain aims to achieve a budget deficit of 2.1% of its gross domestic product next year, down from 2.5% projected for this year, Economy Minister Carlos Cuerpo said on Tuesday.
The targets exclude billions of euros of additional reconstruction spending following last year’s catastrophic flash floods in the Valencia region.
Cuerpo added the deficit target for 2027 was 1.8% of GDP.
On Monday, both the European Commission and the Spanish government said Spain’s economy was projected to grow 2.9% this year - more than double the average pace in the European Union and exceeding the previous forecasts of 2.6-2.7%.
Next year, the government expects growth to decelerate to 2.2%, and remain at 2.1% both in 2027 and 2028, Cuerpo said.
“Spain continues to enjoy dynamic and resilient growth. Our differentiated response to the crises since the COVID-19 pandemic has allowed us to emerge unscathed,” he added.
(Reporting by David Latona and Jesús Aguado; Editing by Andrei Khalip)