Spain's central bank on Friday raised its outlook for economic growth this year to 2.3%, though it trimmed its forecast for 2027 over uncertainty from higher energy prices due to the Iran war and warned that bigger downward revisions were possible. The Bank of Spain raised its 2026 baseline scenario for growth from a previous forecast of 2.2%. The economy expanded 2.8% in 2025. The forecast took into account more unfavourable assumptions on energy prices and developments in external markets which it expected to be partially offset by fiscal support measures adopted to mitigate the effects of the war.