United Kingdom was maintained in the first half of the year as the second country that has invested the most in Spain despite the coronavirus crisis and Brexit, with 1,004 million euros, only behind Switzerland. However, the iBritish investment in Spain decreased by 68% in the first six months of the year compared to 3.125 million last year.
A 44% of British companies foresees reduce your investments in Spain this year and a 45% keep them by 2021, while a 73% see bad weather or regular to do business.
All this according to the results presented this Monday of VI Barometer on climate and prospects for British investment in Spain, by the British Chamber of Commerce in Spain and developed jointly with Analistas Financieros Internacionales (Afi) this Monday, which highlights that despite the lower investment, the positive records of British foreign direct investment (FDI) in Spain continue.
Only in two of the last 15 years has British FDI in Spain registered more divestments than investments, which has allowed the United Kingdom to go from being the sixth largest investor in Spain in 2015 to the second largest today.
Furthermore, in 16 quarters since the Brexit referendum, those British investment flows towards Spain they have amounted to 14,665 million euros, represented the 13% of all foreign investment received by Spain.
Until June, Switzerland (2,963 million) led foreign direct investment in Spain, followed by the United Kingdom (1,004 million), France (766 million), Japan (514 million), Germany (465 million), the United States (316 million) and the Netherlands (172 million).
In the first half of 2020, demarcation most benefited by British FDI was Madrid, with an investment of 773.1 million that almost multiplies by five those of the second ranked, Catalonia, with 165.7 million, and by thirty those of the third, Andalusia, with 26.1 million.
Regarding the regions that have benefited the most from British investment in the recovery period since 2014, Madrid, with 10,671 million, once again leads a ranking completed by Catalonia (2,164.8 million) and the Basque Country (1,871.8 millions).
During the presentation of the barometer, Hugh Elliott, the United Kingdom ambassador to Spain, stressed that the data is an “excellent example of the strong commercial relationship between the United Kingdom and Spain”. “The United Kingdom is the main investor of the European Union in Spain, this close economic and friendly relationship will continue after the transition period,” he predicted.
For his part, the Mayor of Madrid, José Luis Martínez-Almeida, has underlined “the stability of the relationship between Spain and the United Kingdom, and how 34% of the foreign investment made from the Community of Madrid is also directed to the British country”.
Almeida has guaranteed that the Community and the Madrid City Council will continue “with the model of the last decades, of openness, low fiscal pressure and continuous effort for the sake of regulatory simplification to provide the region with a framework of conditions and sufficient stability so that those who want to invest in Madrid can continue to do so. “
BRITISH INVESTMENT INSTALLED IN SPAIN REACHES A NEW RECORD
In 2018, the last year for which the stocks of foreign direct investment in Spain have been calculated, United Kingdom was the second largest investor for the fourth consecutive time, continuing the uninterrupted growth of this stock since 2013 and placing it at a record figure of 63,225 million euros, which represents 14% of total FDI in Spain, only surpassed by the United States (17%) and by ahead of France (12%), Germany (10%) and Italy (9%).
By sectors, this stock is mainly distributed by the Energy, with 10,745 million of installed investment, four times more than in 2016, that of the telecommunications (8,917 million), the tobacco (6,177 million) and the manufacture of basic products of iron, steel and ferro-alloys (4.982 million).
The president of the British Chamber of Commerce in Spain, Luis Pardo, has highlighted that the British stock is “markedly productive and supports 235,600 jobs, 60% direct”, a figure that along with others “prove the good health of the bilateral relationship between the two countries even in a context impacted by a pandemic global and by the increasingly imminent outcome of Brexit “.
MOST SEE BAD OR REGULATE THE BUSINESS CLIMATE IN SPAIN
On the other hand, the VI Barometer on climate and prospects for British investment in Spain of the British Chamber of Commerce in Spain also incorporates a survey carried out between the months of July and October of this year to the more than 1,550 companies active in Spain with capital British majority.
The survey reflects a “notable deterioration” in the perception of the climate for doing business due to the collateral effects of the Covid crisis, since if a year ago only 19% of those surveyed called regulating the business climate in Spain and none They considered it bad, today 73% opt for those two options, a figure similar to that of those who in 2019 believed that it was good or acceptable (81%).
The climate data is also obtained by averaging nine topics and the nine have worsened their score compared to last year, including those related to political risk, the labor market or the degree of digitization of our economy.
Also, with character prior to the Covid crisis, a 58% believed it would grow in 2020while in the world post-Covid-19 93% expect it to fall this year, and a 47% who will continue to do so in 2021.
Regarding their investment prospects in Spain, a 44% of British companies expect to reduce them compared to 2019. Looking ahead to 2021, its maintenance predominates (45%) and, both this year and next, its main focus will be taking advantage of opportunities derived from the pandemic.
Finally, a low impact of Brexit in the investment disposition of British companies in Spain, since only 20% attribute the drop in their investments this year to the United Kingdom’s exit from the European Union, a decision that is mainly caused by fears of the appearance of regulatory requirements or barriers (62%) or of tariff costs (43%).