Although the Bank of Spain expects economic growth to slow to 0.8% in the third quarter from 1.0% in the second, international investors are still betting on Spain. Foreign investment outflow fell to 1.5 Bn€ in July compared from 5.5 Bn a year earlier, according to the central bank’s figures.
In the seven months to July, foreign outflow totalled 26.8 bn€ compared with 17.5 Bn a year ago, the Bank of Spain said.
Foreign investment outflow in July was related to financial derivatives transactions (1.3 Bn€) as well as portfolio investments (1.1 Bn basically due to increasing foreign residents’ investments), and, to a lesser extent, other investments such as loans, repos and deposits (0.1 Bn€).
With regard to foreign direct investment, net financing inflows stood at 900 million € as a result of the larger increase in liabilities (non-resident investments) compared to assets (resident investment abroad).
However, the Bank of Spain’s net external liability grew by 100 million € in July.