Spain: an open economy with business opportunities

Perhaps the most significant change experienced by the Spanish economy in recent years is its spectacular and irreversible process of internationalization. This process has manifested itself in various aspects, most notably the increasing openness ratio, measured as the percentage that exports and imports of goods and services represent in relation to GDP. This places us above some of our main trading partners, such as Germany, France, and Italy, and well above countries like the United States and Japan.
Another relevant aspect is the massive influx of foreign investment, attracted by the dynamism of the Spanish market and the high profitability of these investments within a context of macroeconomic stability. Also noteworthy is the gradual consolidation of Spanish investment abroad, which has meant that, for the first time in recent history, Spain has established itself as a net exporter of capital.
Finally, it is worth highlighting the structural change that exports, or even the establishment of companies in foreign markets, have meant for businesses, as it has ceased to be a residual activity that was only carried out when the national market was saturated, and has become an objective in itself.
This process of integration into international markets for an economy like Spain's, traditionally highly protected, has been remarkably successful, as evidenced by the continuous increase in the market share of Spanish exports in world trade. This is all the more significant given that global trade is a constantly expanding activity. The increase in the market share of Spanish companies has been accompanied by a shift in the sectoral structure of our trade.
Thus, our exports are no longer based primarily on standardized consumer goods or unprocessed agri-food products. Currently, almost three-quarters of our foreign sales correspond to the capital goods, semi-finished goods, and automotive sectors. This is especially significant, given that what matters for a country is not only knowing how much it exports but also what it exports and to whom it exports—that is, its specialization profile. Specializing in goods that are less sensitive to economic growth is not insignificant compared to specializing in sectors with higher added value and technological intensity.
In this context, the Spanish economy provides a very favorable environment for international investors. This environment is defined, among other factors, by a dynamic market, as evidenced by the fact that the Spanish economy is consistently growing faster than the rest of our main trading partners. It is also important to note that the dynamism of the Spanish economy is accompanied by a high degree of stability in variables that are fundamental for foreign investors and businesses, such as inflation and the public deficit.
Third, the Spanish economy benefits from its membership in the European Union and, in particular, from the adoption of the single European currency, as this provides additional exchange rate stability to the aforementioned positive macroeconomic results. The Spanish market, therefore, serves as a platform for expansion into other markets, such as Latin America, which has high growth potential and where Spanish companies already have a significant presence. Furthermore, the Spanish economy offers an optimal combination of economic development, in terms of infrastructure and workforce training and skills, and lower costs than most developed countries.
Finally, as international investment increasingly focuses on the services sector, the Spanish economy is one of the most attractive destinations, especially in certain sectors such as tourism, where Spain has a very important comparative advantage.
Given these characteristics of our economy, the Spanish economic and commercial administration is making a special effort to boost the quality of its services and to meet the needs of companies related to foreign markets, always with the aim of consolidating the internationalization process of the Spanish economy.
Among the main instruments used and included in the recently presented Internationalization Plan, the following stand out: the adoption of programs that seek to increase the Spanish export base, the implementation of resources to promote Spanish production in emerging markets with high potential, the promotion of new exportable sectors such as services, language, or culture with the aim of diversifying the sectoral profile of our exports, and the development of the different business areas of the company, with special attention to all those phases prior to foreign investment.
In short, it can be stated that the Spanish economy presents a whole set of factors that make it a fully integrated economy in international markets and that it has a wide range of possibilities for foreign investors and companies, with the attraction of these investors and companies, as well as the consolidation of our foreign sector, being fundamental objectives of the economic authorities.
Rodrigo Rato and Figaredo
Second Vice President and Minister of Economy