IESE Insight 4 Years of Growth for Foreign Companies in Spain

Economics

4 Years of Growth for Foreign Companies in Spain

Berrone, Pascual; Blázquez, María Luisa

Foreign companies continued to upgrade their evaluation of the business climate in Spain as of mid-2017, further confirming the positive trend that began in 2014 and has remained steady over the subsequent two years, fueled by the country's economic recovery.

The 10th edition of the Barometer of the Business Climate in Spain, which presents foreign investors' perspective on Spain, gave the country an average rating of 2.92 out of 5, and reflected favorable prospects in investment, revenue, employment and exports.

According to the Investment Register of the Ministry of Economy, Industry and Competitiveness, direct foreign investment was up 2 percent in 2016, exceeding 24.8 billion euros. This marks the fourth consecutive year of growth in this area.

Meanwhile, foreign direct investment totaled 14.2 billion euros in the first half of 2017, an increase of more than 10 percent from the same period the year before.

Spain's human capital, market size, infrastructure and the labor market were cited as main attractions by investors.

The areas receiving the highest ratings are infrastructure and market size, followed by human capital and quality of life. The lowest-rated areas remain those related to taxation, financing, costs and innovation.

Methodology, Very Briefly
The 10th edition of the Barometer of the Business Climate, prepared jointly by ICEX-Invest in Spain, Multinacionales por marca España and IESE's International Center for Competitiveness, collects the opinions of 785 foreign companies, surveyed in May and June 2017.

This article is based on: Barometer of the Business Climate in Spain from the Foreign Investor's Perspective

Publisher: IESE; Invest in Spain

Year: 2017
Language: English