The forecasts of foreign companies with a presence in Spain are optimistic for 2024. Foreign companies are positive about their plans to invest and create jobs, and also about their turnover and export targets.

This is one of the main conclusions of the Spanish Business Climate Barometer Survey of foreign investors, prepared by ICEX-Invest in Spain, Multinationals with Spain and the International Center for Competitiveness at the IESE Business School. This report, now in its 16^th edition, accurately reflects investors' analysis of 2023 and their forecasts for 2024.

Investment and employment
According to data provided by over 700 foreign companies, their investments in Spain will grow by 2% this year despite the complex international context. 88% actually say they will increase or at least maintain their planned investments this year, while 37% have no doubt that their investment will be higher than in previous years.

Employment generated by these companies will also grow in 2024. On average, respondents estimate that this indicator will be 3% higher than the number of jobs created in 2023. 90% of companies actually plan to maintain or increase their workforce this year, compared to 87% last year.

Greenfield projects
As explained by the Secretary of State for Trade, Xiana Méndez, during a working session with companies to analyse the barometer, in 2023 Spain was in fifth place worldwide in terms of being awarded greenfield projects and in first place in the European Union, with a total of 785. These types of projects involve major investments, especially for constructing new facilities and hiring new employees.

For Méndez, “Spain has proved to be very attractive for international investors in recent times”. In fact, she reiterated that “over the past ten years, Spain has experienced an outstanding decade in terms of inbound foreign direct investment (FDI)”.

Highest-rated aspects
According to the companies that participated in the barometer, having a presence in Spain has a positive impact on their accounts. 86% plan to maintain or increase turnover this year. 70% of them do in addition export their production to third countries, and 45% of them expect to increase their export volume by 2024. Overall, they rate the business climate in Spain in 2023 at 2.9 out of 5.

Infrastructure was the highest-valued area, thanks to a network of airports, roads, telecommunications, ports and high-speed trains that offer a source of opportunities for these companies. They also highly value the size of the market and human capital, especially the availability of skilled labour and employees’ ability to learn. 

Among the main reasons given by companies for investing in Spain are geographic location, the size of the local market and access to other markets. The assessment of some aspects of taxation, financing and regulatory burdens, as well as the cost of electricity, is more positive than in 2023, although there is still room for improvement.