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Spain on the high position on AT Kearney „ 2016 Foreign Direct Investment Confidence Index”

  • Fecha de evento 26 mayo 2016
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  • Publicación 26 mayo 2016
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Spain jumps from 17th to 13th in the FDI Confidence Index this year—the largest gain for any European market—as the country’s economy continues to strengthen after robust growth in 2015. 

 

The 2016 Foreign Direct Investment Confidence Index The United States and China once again claim the top two spots in the A.T. Kearney Foreign Direct Investment (FDI) Confidence Index, holding these respective positions for the fourth year in a row.

These two countries have held steady at the top of the Index in the face of significant changes in the global operating environment over the past four years, including the ongoing economic slowdown in China, persistently low global oil and commodity prices, and the sharp appreciation of the US dollar.


The sustained interest of global business executives in investing in the United States and China in the face of this volatility demonstrates the enduring attractiveness of the world’s two largest economies.

 

The IMF forecasts that Spanish GDP growth will be 2.6 percent in 2016, largely driven by low oil prices and growing private consumption. However, Spain is still struggling to reduce its staggering unemployment rate of 22.1 percent, the second-highest in the EU. Although economic recovery has been slow in coming, Spain’s falling unit labor costs and fairly open foreign investment policies have made the country an increasingly attractive FDI destination, especially for firms headquartered in other European countries.

 

The Netherlands, Germany, Switzerland, and France have been Spain’s leading FDI source countries in recent years. Spain has averaged about $30 billion in FDI inflows in recent years, but political uncertainty yet could weigh on Spain’s economic recovery and attractiveness as an FDI destination.

 

The December 2015 general elections resulted in one of the most fragmented parliaments in Spanish history. Socialist party leader Pedro Sánchez attempted to form a coalition government in early March 2016 but failed to secure enough votes in the Chamber of Deputies. Since the current parliament has failed to form a government, new general elections will be held on June 26. The plethora of economic reforms that Spain desperately needs—such as addressing high budget deficits and rigid labor laws—to boost competitiveness and stimulate economic growth over the medium and long term will remain on hold until a government is formed. 

 

See more at: https://www.atkearney.com/gbpc/foreign-direct-investment-confidence-index/publication/-/asset_publisher/lsBVD71WgZDd/content/2016-a-t-kearney-foreign-direct-investment-confidence-index/10192#sthash.ULkS7m0w.dpuf