30 June 2016 – Expansión
According to Humphrey White, the CEO of Knight Frank in Spain, the country has sufficient structures in place to be able to grow at a good pace over the coming years and to be one of the driving forces in Europe.
Brexit led to a general fall in European stock markets, an increase in the risk premium and the devaluation of the single currency, but since Monday, all of those indicators have been gradually returning to normal.
According to Humphrey White, Spain may benefit from this situation following the Partido Popular’s victory in the general elections, because it has the ideal space for the development of the economy.
The stable outlook for the Spanish economy is based on the following arguments: Spain has some of the best infrastructure in the European Union in terms of ports, airports and railway networks. In addition, unitary labour costs in Spain are amongst the lowest in the EU – which benefits companies wishing to transfer their company headquarters to Madrid or Barcelona.
In this sense, it is also necessary to point out that the real estate market in the Spanish capital is below those of other European capitals, such as Dublin. Furthermore, Madrid has become an indisputed hotbed for companies in the Information Technology and Communication sectors.
Not only that, financing is becoming accessible for individuals and companies once again and there is real movement in the labour market – although there is still a long way to go.
Original story: Expansión (by Alex Lázaro)
Translation: Carmel Drake