Bankinter : Fitch maintains Spain’s rating at A- with a stable outlook. Fitch has revised the expected growth for 2023 upwards to 1.9% year-on-year (+0.7pp) reflecting “buoyant recovery in tourism and rising public sector investment. This has offset the weakness in private consumption, which recorded a second consecutive quarterly decline”. It projects a reduction in Public Debt/GDP to 110.4% by December 2024, “driven mainly by nominal GDP growth while primary fiscal deficits persist”.
Assessment:
No credit rating surprises. The GDP revision for 2023 is in line with that made by the EC last week. These upward revisions for the current year are based on stronger growth dynamics than expected at the beginning of the year, especially on the services side (including tourism).
