23/11/2020 11:52 – Updated: 11/23/2020 12:06 PM
United Kingdom stayed in the first semester of the year As the second country that has invested the most in Spain Despite the Covid crisis and Brexit, with 1,004 million euros, only behind Switzerland, although British investment in Spain decreased by 68% in the first six months of the year compared to 3,125 million last year.
In addition, 44% of British companies plan to reduce their investments this year in Spain and 45% to maintain them in 2021, while a 73% see bad or average weather to do business.
This is clear from the results of the VI Barometer on climate and prospects for British investment in Spain, presented this Monday by the British Chamber of Commerce in Spain and developed jointly with Analistas Financieros Internacionales (Afi), which highlights that despite the lower investment, the positive records of British foreign direct investment (FDI) in Spain continue.
Covid-19 has slowed 12,000 million euros in real estate investment in Spain
A figure that represents just over 1% of GDP, according to data from addmeet.com, a portal specializing in auctions and private online sales of plots and buildings.
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 today.
In addition, in the 16 quarters since the Brexit referendum, these British investment flows to Spain have amounted to 14,665 million euros and represented 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), USA (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 multiplied by five those of the second classified, 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, the UK Ambassador to Spain Hugh Elliott, 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 installed investment reaches a new record
In 2018, the last year for which the stocks of foreign direct investment in Spain, United Kingdom was the second most important 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 exceeded by the United States (17%) and ahead of France (12%), Germany (10%) and Italy (9%).
By sectors, this stock it is distributed above all by energy, with 10,745 million of installed investment, four times more than in 2016, that of telecommunications (8,917 million), 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 together with others “prove the good health of the company. bilateral relationship between the two countries even in a context impacted by a global pandemic and the increasingly imminent outcome of Brexit. “
Most see bad or regular business climate
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 conducted between the months of July and October this year to the more than 1,550 companies active in Spain with British majority capital.
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 averaging nine themes and the nine have worsened their scores compared to last year, including those related to political risk, the labor market or the degree of digitization of our economy.
In addition, prior to the covid crisis, 58% believed that it would grow in 2020, while in the post-Covid-19 world, 93% expect it to fall this year, and 47% that it will continue to do so in 2021.
Regarding their investment prospects in Spain, 44% of British companies plan to reduce them compared to 2019. Looking ahead to 2021, their maintenance predominates (45%) and, both this year and next, their main focus will be be taking advantage of opportunities derived from the pandemic.
Finally, there continues to be a low impact of Brexit on the investment disposition of British companies in Spain, since only 20% attribute the decrease in their investments this year to the United Kingdom’s exit from the European Union, a decision that they impart especially fears of the appearance of regulatory requirements or barriers (62%) or of tariff costs (43%).