# Bank of Spain raises growth and inflation outlook

9 October 2026 at 13:31

> The Bank of Spain projects 2.6% growth this year while warning of a rising housing deficit set to reach one million units by 2028.

The [Bank of Spain](<https://spainnews.co.uk/entity/bank-of-spain-q789966>) has revised its economic forecasts, projecting growth of 2.6% this year and 2.2% in 2027. Despite this upward revision, inflation expectations have risen to 3.9% for the current year and 3.7% for 2027, according to Director **David López Salido**.

The central bank warns that the housing supply deficit, currently at 750,000 units, will reach one million by 2028. Although annual housing starts rose to 120,000 recently, the three-year completion lag means no significant supply improvement is expected soon.

Addressing the crisis, the government processed two rental regulation decrees via emergency routes after a prior rejection by [Congress](<https://spainnews.co.uk/entity/congress-of-deputies-q539149>). These measures now await [Permanent Deputation](<https://spainnews.co.uk/entity/permanent-deputation-and-council-of-grandees-of-spain-and-titles-of-th-q16557173>) approval as the market struggles to meet demand with limited annual stock.

**Spain**

[#BankOfSpain](<https://spainnews.co.uk/hashtag/bankofspain>) [#SpanishEconomy](<https://spainnews.co.uk/hashtag/spanisheconomy>) [#HousingCrisis](<https://spainnews.co.uk/hashtag/housingcrisis>) [#Inflation](<https://spainnews.co.uk/hashtag/inflation>) #EconomicForecast

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