The economy of Spain received an important appreciation from the Global Ratings S&P, which raised the long-term sovereign credit rating from A to A+ due to the stable prospects, the highest rating in 2012, when Spain needed a rescue plan of the banking sector, informs Euroweekly news. The decision reveals the capacity of Spain of economic recovery in the face of crises, which was driven by the support of the private sector, the solid performance of the exports and the dynamic growth by increasing the labor and the structural reforms. This improvement is the result of the efforts made by the private sector for a decade to reduce the external debt, which makes the country balance to look much healthier. According to S&P, this makes the economy «less sensitive to the sudden changes in external financing conditions and more resistant to economic crises.» The Agency stipulates that the GDP of Spain will increase by 2.6% in 2025, which represents three times the average of the euro area, supported by a solid internal demand, a growing population (largely due to the immigration of Latin America) and the investment activity. The limited direct trade of Spain with the United States continues to protect it from the imminent impact of American rates, which remains a major concern in the context of global commercial tensions. S&P praised Spain's performance compared to other European economies, attributing it to diversified exports of services, especially in high value-added sectors, which gradually reduce tourism addiction, which, contrary to popular faith, represents only 12-14% of GDP. «The economic growth of Spain reflects a structural change to the export of high value services, increasing the resilience against external shocks,» the agency said. The labor market also seems healthier, unemployment decreasing to 10%, and job creation being supported by recent reforms, although unemployment remains high, to 23.5%. For most Spaniards, this improvement suggests potential long -term benefits, although the impact will be gradual. The lower costs of government loans, due to the reduction of interest rates to bonds, could issue a tax space for public services such as health, education and pensions, which are essential for the middle class and pensioners. Households with variable -rate mortgages (about 60% of homeowners) could benefit from smaller payments if banks will transfer savings, while a stronger economic growth will support job safety for 80% of workers in the service and production sector. However, the S&P report warns that these earnings are tempered by certain challenges, including high public debt (about 104% of GDP) and political fragmentation, which could prevent the budget approval in 2026.
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