MADRID, Dec 19 Reuters The Bank of Spain on Tuesday lowered the country39;s economic growth outlook for 2024 and 2025, citing slowing private consumption even as it expected inflation to ebb more than predicted earlier.

This year, growth will have slowed down to 2.4 from 5.8 in 2022, it said in its quarterly outlook, putting fourthquarter growth at 0.3 from the preceding three months.

Next year, the economy should expand just 1.6, below the institution39;s previous forecast of 1.8.

While it was expected to pick up steam in 2025 and grow 1.9, that was also short of the 2 predicted earlier due to a less favourable outlook for future developments in household consumption, which the bank attributed in part to a pricier and more difficult access to consumer credit.

Consumption would still remain the main driver of growth in the medium term, it added.

For 2026, it expects the economy to grow 1.7.

The bulk of the positive economic impact from EU relief funds is now expected to land in 20252026 and not in 2024 as previously envisaged.

Lower energy costs should ease Spain39;s EUharmonised consumer inflation to 3.4 this year, below the previous estimate of 3.6, it said, and it projected prices would rise 3.3 next year, a full percentage point lower than in its previous forecast, and by 2 in 2025.

The potential extension by the government of valueadded tax reductions on electricity and gas bills would have a negative impact in 2024 of 3 billion euros in deficit but a…