Improved foreign company forecasts for 2011 in Spain

INVEST IN SPAIN joined forces with the International Center for Competitiveness (ICC) of the IESE Business School to draw up the “Spanish Business Climate Barometer from the Foreign Investor Viewpoint”. This is the fourth time it has been published, making it possible to observe the development of the viewpoints of foreign business people over the last four years.

The barometer includes valuations made by more than 300 foreign companies as regards the business climate in Spain, and identifies strengths that should be nurtured and backed, and the main areas of action where more effort could be made.

Despite the downturn, the valuation of Spain made by foreign investors is once again positive, although it has fallen slightly in comparison with the previous year (2.9 out of 5 in 2010 as opposed to 3.1 in 2009).

What stands out most is the improvement in the forecasts of foreign companies in Spain for the coming year, as regards employment and investments. More than 72% of the foreign companies consulted forecast increases or maintenance of employment levels in Spain in 2011, as opposed to 65% the previous year. As for investments, more than 70% of the companies also expected to increase or maintain their investments in Spain; once again representing an improvement on results for 2009.

Strengths and Weaknesses

As regards scores for specific aspects making up the business climate, investors made a very positive evaluation of those regarding infrastructures, quality of life and costs in Spain, as well as the size of the domestic market and the access it affords to other countries.

The Barometer also enabled the identification of areas in which investors feel a greater effort should be made, which include topics concerning tax regimes and the labor market, and improvements to the flexibility and reduction of labor costs.

Major novelties have been introduced in the fourth year of the Barometer concerning the methodology in order to improve the clarity of the questions included in the questionnaire for companies and to expand the number of areas under consideration.

The publication was presented by Javier Sanz, Chief Executive of INVEST IN SPAIN and Antonio Núñez, Director of Special Programs and Public Management of the IESE. The results of the study were analyzed by Jorge Dajani, Executive Director of Strategy and Development of INVEST IN SPAIN, and the IESE researcher, María Luisa Blázquez.

About the IESE

The IESE, the business school of the University of Navarre, is one of the ten top business schools in the world. It has pioneered executive training in Europe since its foundation in 1958 in Barcelona. The IESE is renowned for its self-management style, the widespread use of its case study methodology, its international reach and the emphasis it places on providing people with a central role in executive decision-making. The IESE has a global outlook with campuses in Madrid and Barcelona, a center in New York and offices in Munich and Sao Paolo. It organizes and directs programs on four continents.