Spain´s dependence on foreign capital flows and the need for improved public debt sustainability

Spain´s dependence on foreign capital flows and the need for improved public debt sustainability

Fecha: marzo 2022

Joaquín Maudos

Capital flows

SEFO, Spanish and International Economic & Financial Outlook, V. 11 N.º 2 (March 2022)

Seven countries currently account for over two-thirds of total foreign investment into Spain. To shore up international investor confidence, Spain needs to make its public debt more sustainable, a task that is currently more pressing given the potential for an increase in risk premium within the context of a normalisation of ECB monetary policy.

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