MADRID, March 11 (Xinhua) -- The Bank of Spain on Tuesday raised its economic growth forecast for the country but cautioned about uncertainty stemming from the Trump administration's tariff policies.

In its report "Projections and quarterly report for the Spanish economy: March 2025," the bank revised its growth estimate for this year, forecasting a 2.7 percent increase in GDP, up from the 2.5 percent predicted in its previous report.

"Data shows that homes will have a higher level of income and that leads us to think they will have a greater capacity to consume," explained Angel Gavilan, director of economy at the bank, during the report's presentation.

However, Gavilan highlighted the "uncertain and complex" situation the world is in due to U.S. President Donald Trump's tariffs.

He noted that the bank's forecasts do not fully account for the potential negative effects of rising uncertainty and geopolitical tensions in recent months.

The threat of tariffs could lead "households and companies to postpone their decisions over spending and investment, which will contribute to slowing down the growth of GDP." Enditem

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