Spain’s A- long-term foreign currency rating was upgraded to A with a stable outlook by Fitch. The upgrade was announced in a report on Friday, and Moody’s also upgraded the country’s rating shortly after.
The risk rating agency predicts that the Spanish economy will continue to be robust, with low vulnerability to US tariffs and consistent net external clearance, as reported by CNN.
Spanish economic performance exceeded expectations and outperformed other eurozone economies, driven by substantial migration inflows and the export of diverse and robust services, as highlighted by Fitch.
The agency mentioned that recent improvements in productivity, modest wage increases, and affordable energy prices have boosted competitiveness and enhanced the financial health of private sector external accounts.
Spain’s GDP is expected to increase by 2.7% in 2025 and then slow down to a 2% expansion in 2026, surpassing the initial growth forecasts for the first half of 2025.
The country’s entrepreneurial and consumer sentiment indicators are positive, and the manufacturing sector has seen advantages from the growth in solar and wind power generation.
The workforce’s robust expansion is attributed to substantial migration, especially from Latin America, along with recent reforms and a common language facilitating integration into the job market. This has led to an increase in Spain’s potential growth estimate from 1.4% to 2%.
European Union accelerates the development of the Euro Digital in response to Brics’ influence.
The Economic Ministers of the Eurozone countries have decided to accelerate the development of the Euro Digital, aiming to create a digital form of the European currency through blockchain technology.
The agreement outlined by the Exam aims to hasten the approval process for a bill that would enable the European Central Bank to accelerate testing for the central bank digital currency (CBDC) and conduct analysis in all participating countries within the bloc.
The development of Euro Digital is expected to take a few more years despite the progress made. ECB President Christine Lagarde stated that the project will ensure the monetary independence of the bloc during a press conference following the meeting with the ministers.
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