Publications

Global uncertainty, especially on geopolitical and commercial issues, has been creating a complex and atypical environment for Latin America in 2025. This has led to high market volatility, caution from monetary policy, and broader than normal ranges when forecasting economic variables.

In 1985, Spain joined what was then the European Economic Community. Four decades down the line, the balance is very positive in terms of growth, employment, and well-being, although it also reveals certain outstanding issues that Spain would do well to address.

Colombia’s GDP grew 2.7% in Q1 2025, driven by consumption (76.7% of GDP), while investment remains weak, especially in housing and infrastructure. The key challenge is boosting investment to ensure sustainable growth.

The imbalance between the value of our assets abroad and of Spanish assets held by foreigners has narrowed from almost 100% of GDP 10 years ago, to just 44% of GDP at the end of 2024.

The increased penetration of renewable energies in Spain, especially solar and wind, has reduced wholesale electricity prices by 20% in the last three years and could cut them by a further 20% by 2030 if the ambitious PNIEC targets are met.

So far, the impact of the Next Generation EU funds on investment and productivity has been less than expected. However, with a broad consensus and structural reforms, Spain should be able to realize its potential and consolidate more solid, sustainable, and productive growth.

The parliamentary process should amend the proposal so that the reduction of the workday happens gradually, with increases in productivity and through collective bargaining, minimizing distortions and avoiding additional inefficiencies in the labor market.

Spanish companies have reduced their debt over the past decade, largely due to a contraction in bank credit. The performance of this type of credit has been negatively influenced by demand-side factors, especially weak levels of investment.