Investment Trends – Latest Figures Indicate A Brighter Future

Investment Trends - Latest Figures Indicate A Brighter Future

A report released by ICEX shows there are strong foundations for sustainable economic growth in Spain. According to the report, there have been many reforms leading to the country becoming more competitive in the European market place. These include fiscal consolidation in all levels of public administration, competitive labour costs and a favourable tax rate on corporate income of 25 per cent.

As might have been expected, gross domestic product slipped to a low in mid 2009. However, after a few ups and downs in the next few years, by 2014 it was growing steadily. The rise continued through 2015 until it was almost at levels not seen since 2007.

Labour costs have remained low in Spain, putting it on a strong footing when compared against the UK, France, Germany and Italy. However, during the years of 2008 and 2009 when productivity in those countries dipped to greater or lesser degrees, the productivity of Spain continued to grow. From being far below France, the UK and Germany, among these, it has risen to be second only to the UK. This happened as a result of competitors either falling away or managing steady but not notable growth. Spain has kept its trajectory very much in the ascendency.


This increased productivity and favourable comparison with other countries in the Eurozone continues when looking at Spain’s job creation. It has seen a 36.6 percent increase with Germany and Italy both managing just under 16 percent in the same period while growth in Ireland has been at just three and a half percent.

Foreign investors seem to be taking all this on board and are looking favourably at Spain. When the pie of international investment of 2014 is portioned, the UK is far ahead of the rest of Europe with a share of 6.4 percent while Spain is on a par with France and Germany; Germany is at 2.9 percent while France and Spain are at 2.8 percent. Incidentally, the USA comes out on top of this table with its 20.8 percent share representing 5,409,884 million dollars. Spain’s share of foreign investment was 721,879 million dollars.

Investinspain says Spain has one of the most attractive markets in Europe. It also states that, in the world, Spain enjoys the 13th largest economy in terms of GDP and the fifth largest in the European Union. In addition to this, it says that when it comes to purchasing power, Spain’s income per head is markedly higher than some of the major economies often ranked above Spain, making it one of the more dynamic emerging economies.

The report continues:  ‘Spain also constitutes an optimum port of entry for obtaining privileged access to the entire Mediterranean area, North Africa and, of course, Latin America, a region with which we enjoy deeply-rooted economic, historical, linguistic and cultural ties.’


It would seem that foreign investors are continuing their faith in Spain as an area of growth. The Business School of the University of Navarra looked closely at more than 500 companies and concluded that 95 percent of foreign companies were ‘expected to maintain or increase their investments in the country between 2016 and 2018.

Looking ahead, just four percent of companies currently investing in Spain said they expected a drop in revenue for 2017-2018. The report continues, ‘Companies [in Spain] with funding sourced from Germany and the United States are the most optimistic about increasing revenues in the coming years.’

For more information please contact corporate law firm Argali Abogados.


Comments are closed.