New €5 billion investment highway plan revealed by Spanish Prime Minister Mariano Rajoy. The slump in high speed train construction work and the lack of highway improvement projects has led to the volume of infrastructure investment in Spain fall below 2% of GDP, according to analysts at Bankinter.
Blackstone Group L.P, a private equity and asset management firm based in the U.S, will acquire a 51% stake in Spanish bank, Banco Popular, making it the largest investors in Spanish real estate, reports the Financial Times. Banco Popular was saddle by €37 billion in toxic assets, following the economic crisis which struck nearly ten years ago now. In June, the European authorities declared the bank was ‘failing or likely to fail’ and put the lender in resolution.
Further upward revisions have been made to Spain’s economic growth forecast for 2017, says BBVA. BBVA, Spain’s second largest bank, presented its economic report, showing economic growth of 3.3% this year, a revision of +0.3% on the previously predicted 3.0% growth.
Far more Brits are choosing Spain over other EU countries as their holiday destination this year, reveal figures from Gfk Leisure Travel Monitor for the UK. Spain has always been a top choice destination for holidaymakers, especially for the Brits, but this summer the country is gearing up to welcome 270,000 more British travellers than it did last year.
In the second quarter of the year (Q2) Spanish GDP rose by 0.9%, announced the Bank of Spain last week. The Spanish economy is maintaining a steady growth pattern following a 0.8% rise recorded in Q1.
Bankia, Spain’s fourth largest bank, has agreed purchase Banco Mare Nostrum (BMN) in a 7.8 for 1 share swap deal, valuing BMN at €825 million, reports euronews.com. When the housing bubble burst in 2008 the number of lenders in Spain fell from 55 to only 13, leading to a five year economic slump. Both Bankia and BMN were nationalized following the economic crisis in a bailout worth €24 billion; the state owns around 66% of Bankia and 65% of BMN.
Despite the falling pound to euro exchange rate and the UK’s decision to leave the EU, exports from Spain to the UK reached a record high of €19 billion last year.
Unemployment levels in Spain just keep on falling and the running 12 monthly total reveals there is no sign of it slowing down. The number of people registered as unemployed across Spain fell by 3.1% in May, representing a drop of 111,908 to 3,461,128, according to figure released from Spain’s Ministry of Employment.
Now is a “good time” to purchase a property in Spain, agree 71% of Spaniards in a new report by bank real estate servicer Solvia and research company Kantar TNS. Kantar TNS developed an index to measure investor confidence in the Spanish property market. The index consists of a scale from zero (the most negative) to two hundred (the most optimistic).
Spain’s current account balance recorded a deficit of €0.2 billion in February, the best February result seen in decades. The figure was significantly better than in February 2016 when the deficit stood at €1.1 billion. In the 12 monthly run up to February, the current account balance reached an excess of €23.5 billion, a new record over the surplus €22.6 billion reached in January.