Spanish Prime Minister Pedro Sanchez leaves after a press conference during the Fourth International Conference on Finance and Development in Seville, on July 1, 2025.
Christina Quicler | AFP | Gety pictures
The Spain government has received another batch of credit rating agencies, with Fitch and Moody’s S&P joining to raise its country’s assessments.
The hat hoax of rating comes as Spain’s economy The superiority of its European peers continuesWith the recent modernization of the country and the central bank its growth forecast for 2025.
Fitch on Friday Using upward in an upward way Spain’s long-term classification on “A” from “A-“, referring to the favorable prospects for Spain.
“Modern productivity gains, moderate wage growth and relatively low energy prices have strengthened external competitiveness and enhancing private foreign public budgets,” Fitch said in a statement.
The Rating Agency added that it expects the economy of Spain to remain flexible, “with the help of Limited exposure to American definitions And the continuous external netaging. “
Moody also Arise The classification of Spain last week by one, to “A3” of “BAA1”, saying that the decision reflects his view that Madrid’s economic power is improving due to a more balanced growth model and improvement of the labor market and the most powerful banking sector.
Spain’s economy was gone from Power Recently, it is supported by foreign investment, tourism and immigration.
The country’s government said earlier this month that it expects GDP (GDP) To expand by 2.7 % This year, an increase of 2.6 % previous expectations, and more than 1.2 % growth expectations visual For the wider euro area.
Earlier this month, S & P Global also gave Spain ClassificationQuoting a “remarkable improvement” in the country’s public budget and improving flexibility in economic shocks.
“Structural Reforms will be the real test”
Judith Arnal, an older colleague at the Royal Institute of Elcano, a research tank in Madrid, said Spain has emerged as a clear growth leader among the largest economies of the eurozone in recent years.
“Spain’s growth not only dependent on flourishing tourism, but also on the dynamic services for tourism, such as business, communications and information technology services. This represents a transformation in the country’s growth pattern, indicating that Spain has competitive companies capable of exporting beyond the traditional sectors,” Arnal told CNBC by email.
“The growth was closely related to demographic dynamics and job creation. More than half of the jobs that have been created since 2020 by immigrants have been operated, which supported the expansion of GDP in general, but it means that the gross domestic product of the individual may be offered with less power. This reflects a more comprehensive growth model than intense growth.”
In the future, Arnal said that although political uncertainty did not prevent Spain from leading the growth of the eurozone, the country’s economic performance may be better with stronger stability.
“The Spain government is keen to offer this period of high growth, but financial unification and structural reforms will be the real test in the medium term,” said Arnal.
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