Alicia García Herrero (Natixis)| Investment sentiment has declined significantly in the last two months of 2023, mainly due to negative sentiment regarding real estate. In December, regulatory fines were issued to multiple financial institutions, including two large AMCs and a few banks, for the illegal granting of funds to developers. Despite numerous stimuli aimed at encouraging financial institutions to provide financing channels for developers, it is anticipated that only those real estate companies that have undergone thorough and strict investigations will be able to secure financing in the future.
Reflecting the worsening sentiment, the level of economic policy uncertainty has also increased, possibly due to the seasonal trend of increased discussions about economic policy towards the end of the year. Although Moody’s previous rating downgrades have caused some uncertainty, the key phrase on growth in the official news release has been adjusted from “stability as the top priority,” which was used for 2021 and 2022, to “growth with stability.”
