Enrique Fanjul (Real Instituto Elcano) | There has been a lot written lately about the role of the foreign sector as the driver of the Spanish economy’s recovery. There have also been some very interesting academic papers published, which provide us with more details of the new configuration of Spanish exports. The exports map is changing, with non-tourism services an increasingly more important segment.
The Public Works Minister, Íñigo de la Serna, said the ministry will launch “before the summer” a record 2.717 billion euros investment programme for AVE high-speed train and roads.
Navantia will build five Avante 2200 corvettes for Saudi Arabia in the shipyards in Ferrol and Cadiz. It has been negotiating the contract since 2015 and it will provide nearly 6,000 direct and indirect jobs annually over the next five years. The operation is worth some 2 billion euros.
The IMF highlights that the Spanish population, like that of the other developed economies, will age over the coming years. The number of pensioners is increasing faster than the number of active workers. So the average salary is beginning to come in at the same level or below that of the average pension.
It’s almost certain that the Catalan crisis will prevent the Spanish budget from being approved, which will be a blow to political stability and the duration of the current legislature.
On Friday, S&P raised its rating on the main Spanish banks by one notch. The decision came in the wake of the rating upgrde by the same agency for Spain’s public debt on March 23, so its “a logical move,” according to Renta4.
The Blackstone Group has bought 16.56% of Hispania for 315,37 million euros from QP Capital Holdings Limited and QPB Holdings, owned by George Soros. It intends to make a full bid for the Spanish socimi.
The number of Spanish unemployment fell by 47,697 in March in comparison with the previous month, according to figures from the Labour ministry. Figures of registered unemployed totaled 3.42 million, which was the lowest level of the last nine years.
Although most of Spain’s public debt belongs to the central Administration, the debt held by the 17 autonomous regions is by no means insignificant: it accounts for 25% of Spain’s GDP, way above the 16% it represented just five years ago. Many regions are now returning to the debt markets.
The credit ratings agency Standard & Poor’s Global Ratings has begun to raise some Spanish companies’ ratings, which was expected after it improved its rating on the country from “BBB+/Positive” to “A-/Positive” on March 23. Bankia, Mapfre and state-owned Cores are the three chosen firms.