The Spanish government on Monday raised its gross domestic product growth forecast for this year to 2.4% from a previous 2.1% in its 2024 budget draft sent to the European Commission.

The government lowered the growth forecast for 2024 to 2% from a prior 2.4% as it expects the economy to be more "dynamic" this year but the world geopolitical conflicts are likely to weigh on the Spanish economy next year, according to a statement released by the Economy Ministry.

As a result of the updated growth expectations, the Spanish government reduced its forecast for debt-to-GDP ratio to 108.1% at the end of this year from its previous guidance of 'lower than 110%'. The ratio would fall again in 2024 to 106.3%. (Reporting by Inti Landauro; Editing by Toby Chopra and Emma Pinedo)