S & P raises the rating of Spain – The Tribune.fr

The Standard and Poor’s rating agency noted Friday, October 2 by one notch the rating of long-term debt of Spain, of “BBB” to “BBB +”, welcoming the labor market reforms , less than three months to parliamentary elections.

This note is accompanied by a stable outlook, a statement said. “The Spanish economy has benefited twice from labor reforms since 2010 that have improved export competitiveness and in the service sector,” notes SP.

Sustained growth

The rating agency expects an increase in gross domestic product (GDP) in the fourth largest economy in the euro zone of 2.7% between 2015 and 2017, against 2.2% in its latest forecast dating back to April, correspond to a nominal GDP growth (not adjusted for inflation) of 4%.

“The Spanish economy is more open it seven years ago” when the bursting of the housing bubble has plunged into its worst crisis since the advent of democracy after the death of dictator Franco in 1975, falls SP.

L access to financing sources has also become easier for banks and Spanish companies, says the rating agency.

The economy went back ahead in 2014 with a GDP growth 1.4%. This recovery is expected to strengthen, with growth of 3.3% this year and 3% in 2016, according to forecasts by the Conservative government of Mariano Rajoy.

Government on the grill

He led austerity policies since coming to power in 2011, won a large majority when voters had sanctioned the Socialist government for its handling of the crisis that erupted in 2008.

M . Rajoy is again topped the list of the Popular Party (PP) for the next legislative elections of 20 December. But his party is in danger of losing the absolute majority in parliament, even power.

Unemployment has declined significantly but remains above 22%

A large part of the said population does not feel the effects of the economic recovery underway since 2013. Unemployment still exceeds 22% of the labor force, the highest rate in the EU after Greece.

Weight public debt remains too heavy. It is expected to reach 98.9% of GDP in 2015, against 92.1% on average in the euro area at end-2014, according to government projections.

(With AFP)