Spain faces economic challenges despite recent growth

Significance Despite the budget's commitment to social investment reflecting recent growth and post-recessionary optimism, emerging trends in the national and global economy, compounded by the risk of political instability, threaten to destabilise Spain’s economy over the coming years. Impacts Stretched public finances will leave little space to counter economic shocks. Pressure on existing markets will encourage companies further to diversify their export markets. Weaknesses in Latin America may push Spanish companies to pivot towards Europe and North America.