Torres, Raymond

Spanish economic forecasts: 2024-2025

The Spanish economy is expected to grow by 2.5% in 2024 and another solid 1.8% next year, continuing to outpace the European average by a considerable margin. The favourable external competitiveness position is a key factor behind this performance; nonetheless, corporate and housing investment continue to lag pre-pandemic levels, undermining potential output, while the high structural public deficit increases vulnerability to geopolitical and financial risks.

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EU trade and investment in the midst of re-globalisation

An analysis of EU trade and foreign direct investment flows reveals a relative decline in the EU’s competitive position, notably with respect to the US and China, with the EU now a major net exporter of capital to invest in companies located in other countries. Greater participation by member states in the single market has played a mitigating role but is insufficient to offset the broader weakness unless supported with strategies for revitalising investments within the bloc.

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