95% of foreign companies will increase or maintain their investments in Spain in 2017

The business climate in Spain has improved since 2014 and now has an average rating of 2.9 out of 5. According to the Barometer on the business climate in Spain, the outlook for foreign companies has improved because the forecasts made in previous studies have been met, not only in relation to investment, but also to the workforce, billing and exports.

The 2016 Barometer was presented on Thursday, 15 December at the Ministry of Economic Affairs, Industry and Competitiveness, during a workshop that analysed the most important aspects and the main results of the study. The event included the participation of the State Secretary for Commerce, María Luisa Poncela; the Executive Director of Invest in Spain, José Carlos García de Quevedo; the Chairman of Spain Brand multinationals, Adolfo Aguilar Delgado; the Director of Corporate Development at IESE Business School, Luis Arias Hormaechea; and the Research Associate at the International Center for Competitiveness de IESE, María Luisa Blázquez.

The workshop also included the presentation of the Spain Business Guide 2016, prepared by ICEX-Invest in Spain in conjunction with Garrigues, the main new features of which were analysed by Vicente Bootello, Tax Partner at the law firm and guide coordinator.

Outlook for the future

95% of the companies surveyed expect to maintain or increase their investments in Spain in 2017, which shows an improvement in the outlook for the coming years. Furthermore, 95% expect to increase their workforce next year. As regards billing, 62% expect to see an increase in 2016 on the figures for 2015, while only 4% believe they will fall, and moreover, 69% believe they will improve in 2017.

Exports by foreign companies from Spain will also improve in 2016 and in 2017, according to 96% and 98% respectively of those surveyed. These forecasts are made based on the surveys carried out during May and June of this year.

Assessment of the market

The Barometer includes opinions from 700 foreign companies, which gives a measure of the strengths that our country must maintain and those weak points that it must improve upon. The greatest Spanish strength lies in the area of infrastructures, as well as certain quality of life aspects, while the size of the market is growing thanks to economic recovery and heightened internal demand.

Those points that need improving upon are related to financing, costs and innovation. Other areas with room for improvement, although not frowned upon by foreign investors, include learning foreign languages, the ability to learn and the acceptance of responsibilities and targets. Lastly, companies are concerned by the job market, bureaucracy and electricity costs.

ICEX-Invest in Spain

The Executive Directorate of Invest in Spain of ICEX is tasked with the promotion and attraction of foreign investors. Its mission is to promote, attract and foster foreign investment in Spain, as well as reinvestments from well established foreign companies, placing itself as a reference point for foreign investors and as a meeting point for institutions which, at a State, regional or local level, are engaged in the promotion and attraction of investment. ICEX also undertakes activities to position Spain as a global platform for international business and investment. Another area in which ICEX operates is in improving the business climate in Spain through constant interaction with other ministerial departments, business associations and companies established in Spain, both with Spanish capital and that of third countries.

Spain Brand multinationals

This is a private and independent organisation, made up of foreign multinational companies established in Spain that operate in all sectors of activity. It has two goals: to boost, from a business perspective, the public defence of the image and reputation of Spain, to convey a suitable perception of our country as an excellent destination for investors, to promote the spread of the role that multinationals play in economic growth and the continued improvement of Spain, as well as enhance the way our country is viewed as a favourable environment for the activity of multinational companies.

IESE

IESE Business School is an institution engaged in the higher education of business studies. The ICC is one of its research centres, the goal of which is to foster research and in-depth teaching in the field of competitiveness and its implications in different areas. Lead by Professor Antoni Subirá and set up in collaboration with the Institute for Strategy and Competitiveness that Professor Michael Porter heads up at Harvard University, the ICC places particular emphasis on the European Union and its role in the creation of a favourable business climate.