Spanish GDP growth in the fourth quarter
In the fourth quarter of 2023, Spain recorded a growth of 0.8% in its gross domestic product (GDP), maintaining the pace of the previous quarter and exceeding analysts’ expectations. This positive result was mainly fueled by record tourism and strong domestic demand, which contributed to an annual increase of 3.2% in GDP for 2024. In addition, relatively low energy costs have played a crucial role in supporting this economic expansion
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The Spanish government’s political challenges
Despite the encouraging economic results, Prime Minister Pedro Sanchez is facing significant difficulties in passing legislation and approving the budget. The situation is complicated by a fragmented parliament, which makes it difficult to reach a consensus on issues crucial to the country’s economic future. This political instability could negatively affect investor confidence and long-term economic stability
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Impact on markets and future prospects
The European stock exchanges opened the day in no particular order, with Piazza Affari remaining above parity. Investors are waiting for the Federal Reserve meeting and the financial results of major companies such as Meta, Microsoft and Tesla. In addition, Aksìa carried out the first divestment of the Aksìa Capital V fund, selling 100% of MIR. However, the outlook for 2024 is not all rosy: Safilo expects a decline in revenues, despite an improvement in margins, while Volvo recorded a decline in profits in the fourth quarter, attributable to weaker demand for heavy vehicles in markets such
as Europe.