Newsweek International January 07-14, 2022

Having bounced back strongly after more than a year of pandemic-induced crisis, Spain’s economy is gaining momentum. Real GDP growth is set to hit 4.6% this year and employment soared, exceeding pre-pandemic levels by October. Fitch Ratings reports that Spain’s economic recovery will only accelerate in 2022: GDP growth is forecast to reach 6.2%, underpinned by a €140 billion EU recovery fund spending package, a robust, value-added economy, and rising investment in new green and digital initiatives. Investors are already taking note. Spain has benefitted from the steady hand of Prime Minister Pedro Sánchez, who negotiated one of the most robust EU recovery fund packages among all 27 member states last year, and who sees opportunity in the crisis, as he explained: “The Recovery, Transformation and Resilience Plan approved by the…

“A splendid combination of economic potential, culture and quality of life” is a compelling billing for a country, and a deserved one for Spain. The description comes from a recent report on the country by business association Círculo de Empresarios and consultancy BCG which highlighted the fact that Spain had the highest growth in the eurozone on the eve of the covid-19 pandemic. The report asserts that Spain “possesses the necessary talent and resources to continue leading growth over the coming years”. This economic resurgence is good news for the Spanish consumer sector, as reflected in findings by data and consultancy company Kantar in late 2021 - 89.2% of Spanish consumers are optimistic about the future, and the majority (70.2%) of Spanish have not seen their level of income affected by…

Forecasting “robust growth rates… accompanied by falling unemployment”, ratings agency Fitch gave a strong vote of confidence to the Spanish economy in October 2021, noting falling debt and a shrinking deficit. Fitch forecasts stellar growth of 6.3% this year and 6.4% in 2022, with the EU’s Next Generation funds boosting medium-term growth potential thereafter and accelerating the pace of public debt reduction. The report came four months after the agency affirmed Spain’s A- investment-grade rating, with stable outlook, citing the country’s “high value-added economy, strong governance indicators, and ease of doing business and human development rankings”. Fitch has noted that Spain entered the COVID-19 pandemic in much stronger macroeconomic shape than it faced the 2008-09 global financial crisis, thanks to impressive economic growth and economic rebalancing. The rising economic tide is…

One area that could strongly benefit is the country’s automotive industry. Spain is the second largest automaker in Europe and the eighth largest in the world; the automotive industry makes up roughly 10% of Spain’s GDP and 18% of its exports. “In the automotive sector, Spain, and the Basque country in particular, is a world reference, “ says Jesus María Herrera, chief executive of CIE Automotive, an integrator of the automotive components industry. “We do not have an automotive brand; in cars all the brands are German or French. We are in the second level, and here you need different abilities, especially efficiency. In the Basque country, for example, we can get more than €300,000 worth of production a year from each worker – you can’t get that anywhere else in…

Spain’s construction sector benefits from a strong base of highly-internationalized companies that have made their mark on the global construction industry, and the ongoing global green transition presents major opportunities to forward-thinking firms. Swiss Re reports that green and sustainable infrastructure projects will offer private investors an estimated $1.4 trillion of annual global opportunity between 2021 and 2040, meaning green builders will be in extremely high demand. Grupo Ortiz is ready for its next growth phase. Founded in 1961, Grupo Ortiz has grown from humble roots to become a leading specialist in concessions, photovoltaic renewable energy, and an expert in sustainable infrastructure. It has flourished over the years by remaining customer-oriented, flexible and able to adapt to projects´ current and future needs, and by believing in their work, according to Juan…

The wine industry continues to play a major role in Spain, with wine being one of the country’s main agrifood exports, behind only pork, citrus fruits and olive oil. Spain is also the world’s second largest exporter of wine in terms of volume, and third in value, according to CaixaBank Research. Some Spanish wineries, like the Marqués de Riscal Winery, have been in operation for over 160 years. Marqués de Riscal was also the first vineyard in the Rioja region to introduce the French method of ageing wine, which creates a much better quality. “From the beginning, the Marqués had to export his wines, because the Spanish market wasn’t really there for these types of wines and was not ready to pay those kinds of prices,” says Alejandro Aznar Sainz, president…