Good news for Spain! S&P Global Ratings has upgraded its long-term foreign and local currency sovereign credit ratings to ‘A+’ from the previous ‘A’. Congratulations to Spain, which also affirmed its short-term rating at ‘A-1’ with a stable outlook.
According to analysts, the rating upgrade reflects an improvement in Spain’s external balance. This progress comes after a decade of reducing the private sector’s debt burden, which has lessened the economy’s vulnerability to sharp swings in external financing. Spain has long worked toward stability, and now the country has gained resilience to economic shocks.
S&P Global Ratings forecasts that Spain’s economic growth will reach 2.6% in 2025, three times the eurozone average. This robust growth is attributed primarily to immigration, especially from Latin America, large-scale investment activity, and the positive effects of previous structural reforms. Thanks to these reforms, both employment and domestic demand have increased significantly.
The rating agency also notes that Spain’s service-driven economy is sufficiently protected from the immediate impact of American tariffs on goods.
