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Spain's Economy Moves into the Lead: 'A' Rating, Growth Surpasses Japan, and a Focus on Services

Two strong signals emerged in July regarding Spain's economy. The EthiFinance agency affirmed the country’s credit rating at “A” with a stable outlook, upgrading its GDP growth forecast to 2.5% for 2025. Meanwhile, the International Monetary Fund reported a historic "sorpasso": Spain has, for the first time, overtaken Japan in GDP per capita.

💼 Growth Factors:

— High resilience of the services sector

— Influx of labor through migration

— Strong consumer activity and tourism recovery

— Investments in digitalization and the green economy

🇯🇵 What about Japan?

While Spain strengthens its position, Japan faces challenges: zero growth, inflation, record-high public debt (over 200% of GDP), and a declining population. Japan’s economy remains dependent on industrial exports, whereas Spain has aligned itself with the new global trend — an economy of services and experiences.

⚠️ Risks for Spain:

— Political instability and a fragmented parliament

— Potential new tariffs from the U.S.

— Concentration risks in the banking sector in case of a BBVA–Sabadell deal