Spain gains positions among investors

  • Economy

Spain gains positions among investors

According to the A.T. Kearney report, FDI has particularly boomed in Spain’s rapidly recovering real estate and infrastructure sectors.
According to the A.T. Kearney report, FDI has particularly boomed in Spain’s rapidly recovering real estate and infrastructure sectors.

The management consulting firm A.T. Kearney has released its annual report on foreign direct investment (FDI), one of the most influential studies in global finance. Spain stands 11th in the 2017 A.T. Kearney FDI Confidence Index, having climbed two positions since 2016 and six since 2015.

A.T. Kearney’s Confidence Index reflects our country’s positive evolution over the past few years. In 2016, Spain experienced economic growth, estimated by the IMF at 3.2%twice as high a rate as those for big economies like USA or Germany. Our economy will grow by 2.3% in 2017, also according to the IMF, a lower rate yet higher than average for the Eurozone.

Consistent appeal to American investors

FDI has particularly boomed in Spain’s rapidly recovering real estate and infrastructure sectors, which went through a prolonged property slump after the global financial crisis. Strong results have also been seen in the energy, retail and wholesale, and financial services sectors.

According to the Invest in Spain government agency, the United States is our country’s largest source of FDI stock. This is consistent with the fact that investors in America rank Spain sixth globally as a destination for FDI.

The United States accounted for two of the top three mergers and acquisitions completed in Spain in 2016. For instance, New York-based Global Infrastructure Partners bought a 20% stake, valued at 3800 million euro, in Spain’s Gas Natural SDG. And the top deal in 2016 was Mexican conglomerate Groupo Carso’s purchase of FCC for 5900 million euro.

United States, top of the list again

The United States tops the FDI Confidence Index for the fifth year in a row. Germany rises two spots to claim second place, its highest ranking in the history of the Index. After holding the number two position for four consecutive years, China falls to third place in the Index this year. This happened despite investors’ outlook for the Chinese economy making a significant recovery. The top five slots on the Index are rounded out by the United Kingdom in fourth place and Canada in fifth.