Spain has achieved a rare victory in the financial markets, after Fitch and Moody’s followed S&P’s example and improved the country’s ratings, against the backdrop of an economy that continues to outperform its European neighbors, CNBC reports.
Fitch upgraded Spain’s long-term rating to „A” from „A-” on Friday, citing favorable growth prospects and enhanced external competitiveness through productivity, moderate wages, and low energy costs.
Moody's, in turn, raised the rating to "A3" from "Baa1", highlighting a more balanced economy, a stronger labor market, and a more robust banking sector.
The Madrid government now estimates a GDP growth of 2.7% for 2025, above the previous forecast of 2.6% and well above the eurozone average estimated at 1.2%.
The growth is supported by foreign investments, tourism, and immigration, as well as dynamic sectors such as telecommunications, IT, and business services, marking a shift from the traditional tourism-based model.
Judith Arnal, a researcher at the Elcano Royal Institute in Madrid, states that over half of the jobs created after 2020 have been filled by immigrants, supporting overall economic growth but leaving per capita GDP growth more modest. She warns that in the medium term, the real challenge will be fiscal consolidation and the implementation of structural reforms, although political uncertainty has not prevented Spain from becoming the growth leader of the eurozone so far.