Foreign investment grows by 22% in Spain

  • Economy

Foreign investment grows by 22% in Spain

The Mercedes-Benz plant in Vitoria-Gasteiz. Photo: EFE/David Aguilar. (EFE)
The Mercedes-Benz plant in Vitoria-Gasteiz. Photo: EFE/David Aguilar. (EFE)

International investors are obviously interested in Spain. In 2016, foreign direct investment(FDI) rose by 22%, from 23,283 million to 28,821 million euro, placing our country among the top OECD investment destinations.

According to the latest OECD report, last year only eight OECD countries saw more than 30,000 million dollars in FDI: Spain, USA, UK, Australia, Belgium, France, Canada and Netherlands.

Spain’s positive performance was in line with the data for the EU and the G20, where FDI rose by 17% and 21%, respectively. On the contrary, the global trend was negative: -7% as compared to 2015.

The upward trend in our country continues in 2017, with foreign investment totalling 6000 million euro only in January. This total, better than all estimates and higher than in Q4 2016, is the result of political stability and robust growth prospects, experts believe.

Economic recovery

Moreover, Spain stands eleventh in the 2017 A.T. Kearney Foreign Direct Investment Confidence Index, ranking the 25 most attractive FDI destinations. In this survey by the American global management consulting firm, our country gained two positions from 2016 and six from 2015.

The A.T. Kearney FDI confidence index reflects our country’s ‘economic resurgence’, ‘especially remarkable since the country was in political crisis and without a government for more than 300 days.’ The survey reveals that FDI in Spain is ‘particularly booming in the rapidly recovering real estate and infrastructure sectors.’

According to the latest growth estimate by the IMF in April, Spain will grow by 2.6% GDP this year – the fastest growth rate among the world’s leading economies.

Spain’s top investor is USA. Conversely, our country is sixth among the favourite destinations with American investors.

Confidence and optimism

Analysts’ optimistic forecasts about our country have had a positive impact on investor and business confidence. According to the A.T. Kearney FDI Confidence Index, 28% respondents were more optimistic than in 2016 about our country’s prospects for the next three years.

Furthermore, according to the Barometer of the business climate in Spain from the perspective of the foreign investor, 95% multinationals are planning to either maintain or increase investment in Spain this year.