Spanish Credit Rating, Upgraded to "A-" by Standard&Poor's
- Written by: Editor
- Posted: 2018-03-29
The Spanish economy has been increasing in the last years and more and more macroeconomic indicators are yielding positive results. The market is more stable and the international credit rating agency Standard&Poor’s (S&P) has recently modified the country’s credit rating, from “BBB+” to “A-” on account of economic and budgetary performance. Those who want to set up a business in Spain should know that the recent issues concerning the Catalan region did not have a negative impact on the country’s overall economic growth. Our team of Spanish lawyers can advise foreign businessmen on a suitable region in which they can invest, depending on the operations they want to set up here.
Economic outlook in Spain
S&P announced in a public statement that the Spanish economy will expand faster than the average growth rate available in the Eurozone region in the near future (2018 - 2021). More importantly, the Spanish government’s budget deficit will continue to shrink in this period and these two factors were taken into account when modifying the country’s credit rating.
S&P also declared that the Spanish credit rating can be upgraded in the next 24 months, provided that the local government will further consolidate its local economy and the business environment.
It is important to know that another reputable credit rating agency, Fitch, also upgraded the Spanish credit rating at the beginning of the year.
The decision to upgrade the Spanish credit rating was also influenced after the local central bank announced a stronger economic forecast for 2018, higher than the previous estimates.
Economic growth in Spain
The estimates on the country’s gross domestic product (GDP) were upgraded in March 2018 by the Spanish central bank, from a growth rate of 2.4% to 2.7%.
Those who want to open a company in Spain should know that the government will modify the taxation system available for employment purposes, in the sense that the income tax for certain categories of employees will be reduced. Our team of Spanish lawyers can provide legal assistance on the taxation system available in Spain.
Businessmen are invited to contact our law firm in Spain for more details concerning investments performed in this country.