The Spanish growth model has successfully changed in the last months and there has been an increase in the volume of supply, having thus boosted the production of tradable goods and services as shown by the current account surplus. The many changes in the growth model during 2013 have been positive, so if they continue, the consolidation of the Spanish economy recovery will be a fact.
Furthermore, the balance of trade reduced its deficit by 85%, leading to a current account position of GDP 0.6% surplus. Spain is in a much better situation than that of 2008, when its economy was simply unprofitable. Now, after many governmental measures, Spain shines in the path of grow, enticing several foreign investors.
However, the show must go on and so does the change of the growth model. Many experts claim that Spain needs a stable flow of funding coming from international companies and investors, among which the most attractive ones are capital funds and investment companies.
In this context, the private fund JZ Capital Partners Limited and the investment company Avenue Capital Group created last week Toro Finance, which will provide financing for Spanish small and medium-sized companies in need of working capital. These firms see the country as a “land of opportunities,” as some Spanish businessmen have recently described it.
The reforming process is the only way to reach the economic expansion in Spain. In that sense, the three key points are the following: increasing export volumes above imports, making positive the net external demand contribution to the GDP, and expanding the current account surplus. And, of course, keeping a steady flow of gross foreign financing because it can relax the harsh conditions to access to credit, as well as encourage the development of exporting industries.