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Spanish Economy On The Up

The Spanish economy is experiencing continued growth and the future is looking bright. The Spanish economy expanded at a sturdy rate of 0.8% in Q1, the unemployment rate is falling and there is a real sense of optimism in the real estate sector throughout Spain.  The export sector is benefiting from strong global demand.  The IMF predicts that the UK (2.0%) and the US (2.3%) will be among the top performers when it comes to the world’s large economies in 2017. The IMF estimates total global economic growth for 2017 will be 3.5%.

Growth for Spain in 2017 is estimated to be 2.6%, up three-tenths on the last forecast, in January, and putting the country slightly ahead of the United States and Britain in terms of GDP growth for this year.  Reform is still needed and employment contracts and Social Securtiy payments are areas of great concern for the forthcoming budget 2017.

There's a long way to go, but the corner has been turned and we are seeing enquiries for businesses increase and confidence is returning.

Spanish Economy On The Up - 5.0 out of 5 based on 2 votes

Brexit

June 23rd 2016 - The UK referendum on leaving the European Union, the result shocking the rest of Europe and the World and sending markets in turmoil. Then on November 8th, 2016, the world was stunned to learn Donald Trump was going to be the next President of the United States of America.  Both results were unexpected and the consequences will change the world as we know it.

The UK Prime Minister Teresa May has now triggered Article 50 to leave the European Union and the Brexiteer's rejoice with cries of freedom and gaining "our country back".  Whether you agree or don't agree with Brexit one thing is for sure, there is great uncertainty in the markets and this will be the case for the next two to three years. Coupled with Donald Trump as President of the USA with his intention to put “America first” and Asia’s focus on trade liberalisation and globalisation will have a dramatic impact on trade for years to come.  Ayhan Kose the World Bank’s director for development prospects says “Because of the outsized role the United States plays in the world economy, changes in policy direction may have global ripple effects. More expansionary US fiscal policies could lead to stronger growth in the United States and abroad over the near-term, but changes to trade or other policies could offset those gains.”

So what's the effect of these two results on business in Spain?  To be honest we saw deals collapse on the referendum result as the initial shock and uncertainty was too much for clients to comprehend when they were about to sever ties with the UK and purchase a business in Spain, and we totally understand this.  Enquiry levels dropped and as a business we saw levels drop to the recession days again, all very worrying. However there seems to be a silver lining which is very interesting.  We are receiving numerous enquiries from the USA, we always have but not in the numbers we have seen recently, and speaking to clients the reason is the "Trump effect".  The clients we have spoken to don't want to be a part of Trump's new America and they are looking for a safe alternative in Spain.  The UK market for us seems to have levelled and we are sure on one of the reasons for this is weak Sterling, clients are waiting for a better exchange rate.  However we strongly believe that there will be a "Brexit effect" and people will want to move away from the UK and come to Spain to start a new life and hopefully be a European citizen.

The world is changing and this offers new challenges to businesses and we must grasp these and turn negatives into positives.

The Trump & Brexit Effect - 5.0 out of 5 based on 2 votes
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