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Fitch maintains Spain's rating at “A-“.  The outlook is stable

Fitch maintains Spain's rating at “A-“. The outlook is stable

The agency highlights that the rating is supported by a diversified economy with high added value, with an external balance that continues to strengthen despite successive global shocks.

Fitch expects Spanish economic growth to exceed that of major European economies, with GDP growing by 2.1% in 2024 and 2% in 2025, as a result of supporting household incomes, corporate profits, a resilient tourism sector, and an improving economy. Labor market. This review was shared in the early hours of Saturday 18 May.

The agency highlights that the rating is supported by a diversified economy with high added value, with an external balance that continues to strengthen despite successive global shocks.

On the other hand, according to the report, there is a high proportion of public debt, a decline in investment by the private sector, and weak growth in labor productivity, which has repercussions on the level of potential gross domestic product.

Added to this is the political division, as it weighs on the prospects for fiscal consolidation and the possibility of implementing pending reforms, such as fiscal reforms, at the same time that it is believed that the “centre-left” coalition government will continue to favor it. Increased social expenditures.

However, investment will rebound as European recovery funds gain influence and financing conditions gradually ease due to rising interest rates.

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