Spain will run a smaller budget deficit than Germany for the first time in almost two decades next year in a reversal of the two countries’ fiscal fortunes.
Europe’s fourth-largest economy, once a major casualty of the Eurozone crisis, has trimmed its deficit after years of robust growth and higher tax revenues.
Spain’s deficit is set to fall for the fifth year in a row to 2.5 per cent of GDP in 2025 and decrease to 2.3 per cent next year, according to the latest forecast from the Bank of Spain.
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