Strengths and weaknesses of the Spanish economy
It is profitable to do business in Spain, but it is difficult to call this country a universal point of interest for business people. Here, in some places, the patriarchal way of business has been preserved, small family companies and a general orientation towards a small, chamber format. Good or bad, each of you must decide for himself. But we believe that registering a business in Spain is an interesting and promising option, but it requires deep miscalculation. In order the choice to be correct, it is necessary to understand in general terms the peculiarities of the Spanish economy.
Strengths:
- Active development and introduction of renewable energy sources into production.
- Actively reforming the rules and regulations (but not traditions!) of doing business. They regulate the labor market, banking and financial sectors, company registration and bankruptcy, etc.
- Stable (with reservations) GDP in Spain.
- Financial support from European financial institutions.
- Stable decline in the share of borrowed (credit) funds in business.
- Introduction of new technologies into the manufacturing sector and general “restructuring” of the sphere of business relations.
Weaknesses:
- Significant level of debt obligations (private and public debts are starting to affect the development of the economy).
- Spain’s investment rating is extremely low, so there is no significant “margin of safety” in the event of force majeure circumstances.
- Dual labor market.
- Progressive structural unemployment.
- Concentration of business in small formats, which, due to their peculiarities … a) are not always ready to “take a hit” and b) in case of serious, systemic problems, they may require direct government support.
- The main sectors of the economy that are the engine of development in Spain are too dependent on the COVID-19 pandemic.
- Unstable political situation (independence of Catalonia).