Spain’s long-term interest rates have been approaching those of Germany since 2022. Analysts at Natixis say that the positive view that investors have of Spain compared to France, Germany or Italy is reasonable.
Investors are right to prefer Spain to other major European countries
Spain has higher growth than the other three major Eurozone countries.
Spain has a lower exposure than Germany to global trade in goods, which is positive because this trade is declining.
Spain’s cost competitiveness is favourable, which enables Spain’s industrial production to hold up and attract foreign investment.
The trade balance for industrial products is almost balanced and the current account balance is in surplus.
Spain has made great strides in the development of renewable energies, with 50.4% of its electricity production from renewable sources and 70.7% from renewable or nuclear sources in 2023.
