Invest in Spain. Foundations for Sustainable Growth. Investment Trends in Spain. Spain: Global Platform for Business and International Investment

Transcription

1 Invest in Spain Foundations for Sustainable Growth. Investment Trends in Spain. Spain: Global Platform for Business and International Investment

2 Foundations for Sustainable Growth COMMITMENT CONFIDENCE COMPETITIVENESS EMU Integration Spanish Economic Policy Transformation of Spain s Growth Model Single Monetary Policy Fiscal Coordination Banking Union Reforms for Stabilization Fiscal Consolidation Restructuring Financial Sector Economic Growth & Employment Reforms for Competitiveness Labour Market External Sector Contribution 2

3 Reforms for Competitiveness Public Sector Reform Financial System Reform Labour Market Reform Fiscal Reform Competitive Markets Investments and R&D Incentives External Sector Visa & Work Permits Fiscal consolidation at all levels of Public Administration Restructuring process completed in 203 Competitive Labour Costs: More Flexibility, Productivity, Employment & Training Favourable tax rate on corporate income (25% in 206). Fiscal Incentives Single Market Law. Services & Product Markets Liberalization EU Framework: Competitiveness, Employment & R&D activities More openness means a more Competitive & Resilient Economy New fast track regime for International Investor on Residence & Working Visa. 3

4 Main Results Macroeconomic Stability: Adjustment and Growth. GDP-Public Deficit-Current Account Balance (%) Current Account Balance GDP Public Decifit Source: Ministry of Economy and Competitiveness y BdE. GDP: Annual rate of change (%) Public Deficit & Current Account Balance: % GDP 4

5 Main Results Labour Market Reform: More Flexibility, Productivity, Employment & Training Unit Labour Cost (Index 200=00) Productivity per person employed (Index 2000=00) Germany France United Kingdom Spain Italy Germany France Italy UK Spain Source: Eurostat Source: Eurostat 5

6 Main Results Labour Reform: Greater capacity for employment generation Employment Annual Rate % USA EU Japan Spain Unemployment % workforce USA EU Japan Spain Source: Institutos nacionales de Estadística y OCDE Source: Institutos nacionales de Estadística y OCDE Analysis of the Spanish Labour Market Employment Recovery, although a lot still has to be done 6

7 Taxes: Corporate Tax rate below OECD average 60,0 50,0 40,0 30,0 20,0 0,0 0,0 Moderate taxe burden for Companies Tax Rate: 28% in 205 & reduce to 25% in 206 The International analysis shows that Spain is a country with relatively moderate ratio between Tax Revenues (Including Social Security Contributions ) and GDP (32.5% GDP). Lower effective rate based on taxes allowances on incentives reductions fro investments, employment and R*D activities. Countries UE. Tax Revenues (Including Social Security Contributions ) as % of GDP Source: Paying taxes 203 (PwC & World Bank Eurostat 7

8 Export growth An open Economy is a more Competitive Economy Exports of Goods & Services % GDP Germany: ,7 25,5 28,8 30,3 3,6 Spain: 32 Italy: 29.4 France: 28.4 UK: EEUU: Germany Spain France Italy UK USA Source: Eurostat 8

9 Export diversification from Spain An open Economy is a more Resilient Economy 2005: Exports by Destiny (%) 204: Exports by Destiny (%), 0,6 2,2 0,8 5,6 4,3 6,4 6,2 EU-28 6,8 EU-28 AMERICA AMERICA 9,8 REST OF EUROPE ASIA 9,5 REST OF EUROPE ASIA AFRICA AFRICA 72,5 OTHERS OCEANIA 63,4 OTHERS OCEANIA Source: Secretaría de Estado de Comercio Source: Secretaría de Estado de Comercio 9

10 Macroeconomic scenario Stability Programme Percentage Change Real GDP Private Consumption General Government Consumption Gross Fixed Capital Formation Capital Goods and Others Construction Domestic Demand (*) Exports of Goods and Services Imports of Goods and Services External Balance (*) (*) Contribution to GDP growth Source: Ministry of Economy and Competitiveness

11 GDP growth and current account balance GDP growth and current account balance 4% 2% 0% -2% -4% -6% -8% -0% (p) 206 (p) 207 (p) 208 (p) Real GDP (% change) Current account balance (%GDP) Real GDP (% change) Current account balance (%GDP) Source: National Statistics Institute and Ministry of Economy and Competitiveness

12 Spanish Forecasts & Outlooks Interest Rates & Interest Rate Expectations Source: Reserva Federal, Banco Central Europeo, Banco de Inglaterra, Banco de Japón, Datastream-Thomson Reuters y Fondo Monetario Internacional

13 Spain, Key Player in the World Economy Spain in the World Economy Spain in the World GDP GDP Trade in Goods. Trade in Services. Tourism FDI Stock. Billions $ Population per capita Billions $ Billions $ Income $ Tourist Nº Inward Outward RK Country Billion $ RK unit $ RK Millions RK Exports RK Imports RK Exports RK Imports RK Billions RK Millions RK Billions RK Billions United States 6.799, , , , 662,0 43,5 39,6 69, , ,5 2 China 9.8, , , , , ,4 4 5,7 3 55, ,8 2 63,6 3 Japan 4.90, ,3 4 75, 4 833,2 8 45,4 6 62,3 2 4,9 24 0, , ,9 4 Germany 3.636, , ,7 3.88, ,2 3 36,8 8 4,2 6 3,5 7 85,5 3.70,3 5 France 2.737, , ,7 5 68, ,3 4 88,5 3 56, , , 6 UK 2.535, , 8 54, , ,7 5 74,0 9 40,6 7 3, , ,8 7 Brazil 2.242, , , ,4 3 37,5 7 83,3 39 6, , ,3 8 Russia 2.8, , , ,0 2 64,8 0 23,0 27 2,0 8 28, ,7 6 50,2 9 Italy 2.072, ,7 57, ,4 4 0,2 2 07,3 6 43,9 4 47, , ,4 0 India.870, ,3 9 33, ,0 6 50,9 9 24,6 6 8,4 37 6, ,7 3 9,8 Canada.825, , 3 458,4 474,3 7 78,2 4 04,9 7 7,7 6 6, , ,4 2 Australia.505, , , , 25 52,2 9 62,2 3,0 38 6,4 4 59,6 8 47,8 3 Spain.358, ,6 8 36, ,9 9 45,3 6 92,2 2 60,4 2 60,7 76,0 643,2 4 Mexico.258, , ,2 4 39,0 40 9, ,8 23 3,8 4 23, , 28 43,9 5 Korea.22, , ,6 9 55,6 3,8 3 05,9 22 4,3 2 2, , , 6 Indonesia 870, , , ,3 36 2,7 3 34,3 3 9,3 3 8, ,3 52 6, 7 Turkey 827, ,5 32 5,8 9 25, , ,2 2 28,0 5 37, , ,8 8 Netherlands 800, ,8 5 67, ,8 7 46,7 8 27,4 20 5,6 20 2, , 7.07,8 9 Saudi Arabia 745, , , ,2 52, 25 5,7 33 7,7 9 3, , ,3 20 Switzerland 650, , , ,9 6 93, ,8 8 6,5 30 9, , ,4 2 Sweden 557, , , ,8 9 75, ,4 28, , 9 436,0 22 Poland 56, , , , 29 40, 32 33,0 29 0,9 7 5, , ,0 23 Norway 5, , 3 54, , , ,4 42 5,7 42 4, , , 24 Belgium 506, , , ,7 5 06,2 5 97,5 24 3,5 34 7, , ,0 25 Taiwan 489, , , ,9 26 5,4 30 4,7 25 2,7 33 8, , ,9 26 Argentina 488, ,5 46 8, ,7 45 4,2 42 9, 49 4,4 40 5,6 4 2, , 27 Austria 45, , , , , ,6 4 20, 2 24, , ,0 28 UAE (*) 396, , , ,0 43 6,4 8 70, , , ,2 29 Thailand 387, , , , , ,0 7 42, 9 26, , ,6 30 Colombia 38, , , ,4 67 5,7 56, 6 2,5 57 2, , ,0 Source: IMF, WEO Database (April 204 edition) 203 Data; WTO 204, 203 Data; World Tourism Organization (Highlights, 204 Edition.) 203 Data, UNCTAD (WIR 204) 203 Data. (*) UAE Tourist Nº Dubai only. FDI Inward: (3) Hong Kong, (8) Singapore. FDI Outward: (5) Hong Kong. Tourism Income: (5) Macao, (0) Hong Kong. Tourist Nº: (0) Malaysia, () Hong Kong. 3

14 Foreign Investments: Stock in $ Millions Economy Source: UNCTAD, WIR, 204 Inward FDI stock 203 $ Million Share USA 4,935,67 9.4% 2 UK,605, % 3 Hong Kong,443, % 4 France,08, % 5 China 956, % 6 Belgium 924, % 7 Germany 85,52 3.3% 8 Singapore 837, % 9 Switzerland 747, % 0 Brazil 724, % Spain 75, % 2 Netherlands 670,5 2.6% 3 Canada 644, % 4 Australia 59, % 5 Russian 575, % 6 Italy 403,747.6% 7 Mexico 389,083.5% 8 Sweden 378,07.5% 9 Ireland 377,696.5% 20 Poland 252,037 % World 25,464,73 00% Economy Outward FDI stock 203 $ Million Share USA 6,349,52 24.% 2 UK,884,89 7.2% 3 Germany,70, % 4 France,637,43 6.2% 5 Hong Kong,352,353 5.% 6 Switzerland,259, % 7 Netherlands,07,89 4.% 8 Belgium,009, % 9 Japan 992,90 3.8% 0 Canada 732,47 2.8% Spain 643, % 2 China 63, % 3 Italy 598, % 4 Ireland 502,880.9% 5 Russian 50,202.9% 6 Singapore 497,880.9% 7 Australia 47,804.8% 8 Sweden 435,964.7% 9 Brazil 293,277.% 20 Denmark 256,20 % World 26,32,635 00% Source: UNCTAD, WIR,

15 FDI Inward & Outward Stock Inward & Outward Stocks of FDI as per cent of GDP in 203 Source: OCDE, 204 5

16 Foreign Direct Investment & Capital investment Inward Investments in Spain and in other Leading Economies in the World 400,0 350,0 300,0 250,0 200,0 50,0 00,0 FDI Inflows & Capital investment in Greenfield Projects by Country ,0 0,0 FDI Inflows Capital Investment Source: UNCTAD 203 & fdimarkets 205. Billion $ Top 0 Greenfield Destinations in Europe Greenfield Investment Millions $ Capex Projects Jobs Companie Created s UK 3.924, Spain , Germany 30.59, Poland 27.30, France , Romania 23.50, Netherland 6.684, Ireland 4.657, Italy 3.709, Czech Rep , Rest Total Source: FDI Markets, 205. $ millions. 6

17 Foreign Direct Investment in 204. UNCTAD. Outbound Top-20 Investors, 204 (Billion USD) United States Hong Kong China Japan Germany France Russia Canada Singapore Netherlands Ireland Rep. Korea Spain Norway Switzerland Malaysa Taiwan Kuwait Chile Sweden Developed Economies Developing & transition Economies Source: UNCTAD, estimates as of 30 April 205 7

18 Selected Figures on FDI in Spain by origin RK Investment Register Ministry of Economy and Competitiviness FDI Markets: Greenfields Country Total Investment Stock Million Nº Companies (*) Employment (*) Number of level companies plus other Spanish subsidiaries or Spanish companies under their control (level 2 & 3). LATAM: Excluding those Latin American countries listed (B) GCC: Excluding those GCC countries listed (UAE) (C) Nordic C: Norway, Finland and Iceland RK Greenfield Projects Capex Mill $ Jobs Companies USA , , Italy , , France 37.24, , UK , , Germany , , Mexico 9.465, , Luxembourg 9.24, , Portugal 8.749, , Netherlands 4.740, , Switzerland 0.580, , Brazil 8.82, , UAE 5.445, , Sweden 4.999, , Canada 3.778, , Japan 3.63, , Belgium 2.77, , Israel.260, , Australia (+NZ).97, , Ireland.72, , Austria.004, , Denmark 92, , Korea 679, , Algeria 494,8 n.a , Russia 349,6 n.a , Malaysia 297, n.a , India 256,8 n.a , South Africa 249,2 n.a , Singapore 230,3 n.a , China (+HK) 2,4 45* , Turkey 6,8 n.a , LATAM (A) 7.856, , GCC (B).592, , Nordic Countries (C).240,3 n.a , Others , TOTAL , ,

19 Recent Investment trends flows in Spain. Millions EUR Recent Foreign Direct Investments in Spain by Source Country Inv. Flows Recent Foreign Direct Invest. Flows Acumulated Flows and Stock RK Total Flows RK Stock USA 9, , ,020. 3, , , Luxembourg 6,80.6 2,88.3 2, , , , Netherlands 4,899.0,78.8,967.0, , , UK 4,828.0,00.5 2,33.6, , , France 4, ,833.3, , , Germany 3, ,08., , , Mexico 3,366.9, , , , Portugal, , , China (+HK), , Ireland , ,72.3 Belgium , , Switzerland , , Italy , , Japan , , Brazil , , Sweden , , Australia (+NZ) , , Canada , , Korea Denmark , Austria , , Israel , Singapore Algeria Russia India LATAM (A) 3,085.4, , , , GCC (B) , , Nordic Countries (C ) ,240.3 Others 6,505.0, ,860.2,70. 5, ,96.5 TOTAL 58, , , , , ,550. Total Prod. Investment 48, , , , Source: Foreign Direct Investments Registry. Ministry of Economy and Competitiveness 205. Million Euro. Accumulated Flows since 993 (A) LATAM: Excluding those Latin American countries listed before. (B) GCC countries (C) Nordic C: Norway, Finland and Iceland 9

20 FDI Inwards in Spain by Sector Foreign Direct Investment in Spain by Sector. Millions Sector Total FDI Investment Flows Stock Energy 62.69,8.484,2 703,3.02,3 3.99,7 2 Metals and Manufacturing of other mat , ,2.257,3 82, , 3 Retail and Wholesale ,7.948,6.05, , ,5 4 Financial Services ,9 3.85, , , ,7 5 Real Estate, Building and Infrastructures , ,5 4.73,4 4.95,8 3.5,6 6 Food and Beverages ,8.088,4 422,0.406,5 2.96,9 7 Chemicals and Petrochemicals ,7 64,5 452,3 464,.557,9 8 Automotive OEM & Components 9.726,3 799,6 390,3 90,6.280,5 9 ITC: Communications, Software & IT S ,6 592,6 6,7 852, ,6 0 Pharmaceuticals, Healthcare & Biotech 2.042,7 700,4 848,8 392,9.942, Transport and Logistics 0.54,9 298,.527,7 762, , 2 Business Services 9.852,6 937,6 437,6 526,.90,2 3 Tourism 6.849,3 354,6.466,8 977, ,3 4 Industrial Machinery and Equipment 5.666,5 275,6.485,4 7,0.932, 5 Mining and Natural Resources 5.407,9 79,2 34,4 32,2 634,8 6 Paper, Wood and Others 5.23, 39,0 60,5 06,3 485,8 7 Environmental industries 2.777,0 66, 772,4 455,8.294,4 8 Leisure and Entertainment 2.662,8 69,6 75,3 03,5 448,4 9 Consumer Goods.904,7 23,6 24,6 7,4 55,6 20 Other 34,9 20,8 6,5,0 48,3 Total Productive Investment 30.67, , , 7.625, ,0 Total Direct Investment , 9.737, , , ,6 Source: Registro de Inversiones, 205. IED: Stock 202. Flows 202, 203 y

21 Greenfield Projects in Spain by Sectors Greenfield Projects in Spain by Sectors Millions USD Capex Projects Jobs Created Companies % total Consumer Products, Food, Textiles & Beverages , ,4% 2 Energy, Environment & Renewable Energy 23.30, ,7% 3 Automotive OEM & Automotive Components , ,7% 4 ITC: Communications, Software & IT Services , ,3% 5 Real Estate, Building & Construction Materials 4.06, ,4% 6 Transportation & Non-Automotiv Transport OEM.984, ,% 7 Business & Financial Services 0.643, ,3% 8 Logistics & Warehousing 8.652, ,% 9 Chemicals, Plastics & Rubber 8.477, ,0% Consumer Electronics, Business Machines & 0 Equipment, Components & Semiconductors 5.80, ,4% Pharmaceuticals, Medical, Healthcare & Biotech 3.995, ,4% 2 Metals 3.305, ,0% 3 Hotels & Tourism 2.75, ,6% Industrial Machinery, Equipment, Engines & 4 Turbines.636, ,0% 5 Leisure & Entertainment.459, ,9% 6 Aerospace, Space & Defence.005, ,6% Others 2.099, ,2% Total % Source: FDI Markets, 205. USD millions. 2

22 Greenfield Projects in Spain by Sectors: Recent trends $ Millions Greenfield Investment last Greenfield Investment three years Sectors Capex Projects Jobs Company Capex Capex Capex ITC: Communications, Software & IT Services 8.2, , , ,9 2 Consumer Products, Food, Textiles & Beverag 4.670, ,5.34,6 2.32,8 3 Business & Financial Services 3.225, ,7.258,4 83,4 4 Automotive OEM & Automotive Components 3.28, ,3.08,7 782,2 5 Transportation & Non-Automot.Transport OEM 3.032, ,6.444,.00,8 6 Energy, Environment & Renewable Energy 2.59, ,3 640,5 853,5 7 Real Estate, Building & Construction Materials 2.083, ,0 837,7 437,6 8 Industrial Machinery, Equipment, Engines & Turbines 273, ,7 6,9 72,0 9 Chemicals, Plastics & Rubber.69, ,9 5,8 45,7 0 Logistics & Warehousing.085, ,6 398,9 37,9 Pharmaceuticals, Medical, Healthcare & Biotec 739, , 283, 302,2 2 Aerospace, Space & Defence 589, ,3 22,5 35,2 3 Metals 557, ,0 475,9 62,0 4 Consumer Electronics, Business Machines & Equipment, Components & Semiconductors 529, ,0 203,7 2,3 5 Hotels & Tourism 83, ,7 44,8 36,2 6 Leisure & Entertainment 7, ,2 4,7,0 Others 37, ,3 6,0 69,0 TOTAL Source: FDI Markets, 205. USD millions. Recent trends: Greenfield Projects in Spain by Sectors 22

23 Foreign Companies in Spain Over 3,050 foreign companies in Spain across all economic sectors. 70 of the FORBES Top 00 companies have branches and 90 out of 00 top R&D Companies has a subsidiary according to Thomson Reuters 23

24 Global Market Spain Domestic Market European Union Single Market Platform to Latin America MENA: North Africa & Midle East Canary Islands Hub to Africa 24

25 Infraestructure & Transport PORTS: World Logistics Platforms AIRPORTS: Tourists Main Entrance HIGHWAYS: Logistics Networks and Infrastructures RAILWAY: High-speed Network & Merchandise Corridors URBAN TRANSPORT: 25

26 Incentives European Union Incentives Scheme for Large Companies in Spain Grants from Ministry of Finance and Public Administration Aid Intensity Additional Increase in Incentives from 0% to 20% for SMEs 26

27 Incentives & Tax Relief for R&D 2nd most favorable fiscal incentives for R&D among OECD countries Favorable fiscal system for foreign investors and R+D activities Patent Box: Tax benefits for R&D activities. R & D Incentives: Financing, soft Loans & Grants for R&D projects R&D Incentives: Tax relief 0,5 0,4 0,3 0,2 0, 0,0-0, Large firms SMEs Note: Tax subsidies are calculated as minus the B index. For example, in Spain, unit of R&D expenditure by large firms results in unit of tax relief. Source: Science, Technology and Industry, Outlook. OCDE,

28 Technology Parks Excellent infrastructure for Technology Business Development More than 80 Technology Parks in Spain Asturias 2 2 Cantabria Guipúzcoa Bizcaya 2 Pontevedra Orense Salamanca León, Burgos y Valladolid Valladolid Álava La Rioja Huesca Zaragoza Lérida Gerona 7 6 Barcelona Madrid Guadalajara Teruel 2 2 Castellón 2 Valencia Badajoz 2 Alicante Palma de Mallorca Huelva Córdoba Jaén Sevilla 2 2 Cádiz 2 Granada Almería Málaga Murcia 2 Parks at full performance Parks in development Source: APTE Tenerife Fuerteventura Gran Canaria 66 Technology Parks in the Association of Science and Technology Parks of Spain (APTE), hosting over 6,286 companies. 28

29 Human Capital: Productivity and Skilled Labour force Cost per hour Private Sector 203 /hour Source: Destatis 204 (Federal Statistical Office Germany) 29

30 Human Capital: Highly skilled labor force Human Capital: productivity and skilled labour force Spain occupies a great position in Europe in number of persons with tertiary education, in comparison with the biggest European economies 60 Population with tertiary education, % year olds United Kingdom France Spain Germany Italy Source: OECD. April, 205 Note: 203, last data available 30

31 Spain Business Schools Global MBA ranking 205 Ranking School name Country Harvard Business School USA 2 London Business School UK 3 University of Pennsylvania: Wharton USA 4 Stanford Graduate School of Business USA 4 Insead France/Singapore 6 Columbia Business School USA 7 IESE Business School Spain 8 MIT:Sloan USA 9 University of Chicago: Booth USA 0 University of California at Berkeley: Haas USA Ceibs China 2 IE Business School Spain 3 University of Cambridge: Judge UK 4 Hong Kong UST Business School China 4 Northwesterm University: Kellog USA 6 HEC Paris France 7 Yale School of Management USA 8 New York University: Stern USA 9 Esade Business School Spain 20 IMD Switzerland Source: Financial Times 205 3

32 Executive MBA Executive MBA ranking 205 Ranking School name Country IE Business School Spain 2 University of Oxford: Saïd Business School UK 3 Northwesterm University: Kellog School of Management USA 4 UCLA/NUS Business School USA/Singapore 5 Northwesterm (Kellog) / York (Schulich) USA/Canada 6 Northwesterm (Kellog) / WHU (Beisheim) USA/Germany 7 Thunderbid School of Management USA 8 European School of Management and Techonology-ESMT Germany 9 University of Chicago: Booth USA 0 Yale School of Management USA Northwesterm (Kellog) / Hong Kong (UST) USA/Hong Kong 2 Texas Christian University-Neeley School of Busniess USA 3 Southern Methodist Unviersity-Cox School of Business USA 4 University of Georgia-Terry College of Business USA 5 Columbia Business School USA 6 University of Michigan-Stephen M. Ross School of Business USA 7 New York Univeristy-Leonard N. Stern School of Business USA 8 University of Texas at Austin- McCombs School of Business USA 9 UCLA Anderson School of Management USA 20 Cornell University-Samuel Curtis Johnson Graduate S.M. USA 2 University of Nottingham UK 22 ESADE/Georgetown Spain/USA 23 University of Notre Dame-Mendoza College of Business USA 24 University of Maryland USA 25 University of Navarra: IESE Business School Spain Source: The Economist

33 Investors Residence & Working Visa Fast track framework for Investors and qualified professionals: Residence and Working visa VISA AND AUTHORIZATION CONCESSIONS FOR Investors Entrepreneurs Highly qualified professionals Scientists and researchers Intra-corporate transferred employees Real Estate 0.5 Mill Spanish Companies Mill Bank Deposit Mill Public Debt 2 Mill GENERAL REQUIREMENTS Not being in an illegal situation in Spain Being 8 years old or older Not having criminal records Public or private health insurance in Spain Enough economic resources. THE PROCEDURES 0 days for visas and 20 days for authorizations A single authorization for living and working in Spain Valid for the whole of Spain The family will be able to apply at the same time Freedom to live in Spain: Granted residence and work permits authorization Source: 33

34 Investment and Business Opportunities ICT Automotive Logistic & Transport Aerospace Agrofood Environment & Natural Resources Biotechnology & Chemicals Real Estate & Tourism 34

35 More Information about Spain.. Spain: your partner in Europe Investors Service Catalogue The Spanish Economy 35