Spain gets a nine out of ten from foreign investors

More than nine out of ten foreign investors now recommend Spain as an investment destination with 96.6% of those asked having a very positive perception about the Spanish economy. Even with last year’s encouraging results, that figure was still only at 65.5%.

This is according to a report entitled Spain as Investment Opportunity, prepared for the second year by commercial consultants Kreab which canvassed the views of 29 international investment firms.

Three quarters of those polled expected a greater return on their investment this year than last year. Added to that is the fact that 93% of respondents say Spain is an optimal investment destination.

However, Spain’s relative political instability is still perceived as the main risk with 40% citing this as a reason for caution. ¬†However, more people – 44.8% – think the political situation is positive.

Just over three quarters of those polled – 75.9% – said they believed their assets in Spain would continue to grow in 2017 with 6.9% expecting investments to increase considerably. Even the more cautious respondents remained on the positive side with 20.7% saying that they thought their investments in Spain would remain constant. Not one company thinks their Spanish assets will be reduced.

Comparing the figures with last year’s survey, only 30.8% of respondents had expected to increase their Spanish assets by the end of 2016 from the end of 2015, while 7.7% of companies had expected to reduce their investments during that period.


The majority of the surveyed companies – 58.6% – believed that the enforcement of protectionist policies in the USA by Donald Trump’s administration would have negative effects on Spain as an investment destination. However, 13.8% said they didn’t yet have a clear view on what effects these measures would have on Spanish assets investments.

Should London lose its place as the capital of Europe’s trading as a result of Brexit, many respondents to the survey believe Frankfurt could be in a position to benefit most from this. However, Paris, Dublin and Madrid are also thought to be very much in the picture.

Opinion on the impact of Brexit on the other hand was far more evenly split in favour or positivity with 51.7% of respondents thinking it would be a good thing for investment activities in Spain.


Price Waterhouse Cooper said it expects Britain’s GDP to drop from 1.8% growth last year to 1.5% this year and then drop yet again to 1.4% in 2018.

The consultant’s chief economist John Hawksworth said Brexit uncertainty would cause a slowdown on business investment with companies putting their plans on hold during the uncertain period, much as what was seen in Spain last year.

He added: ‘We expect the UK to suffer a moderate slowdown, not a recession, but businesses should be monitoring this and making contingency plans. There are still downside risks relating to Brexit, but there are also upside possibilities if negotiations go smoothly and the recent Eurozone economic recovery continues.’

For more information, please contact corporate law firm Argali Abogados.

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