Fitch, a leading agency has upgraded Spain's credit rating to A- as the economy continues on a steady path of growth and stability.
Four years after the financial crisis hit, Spain was downgraded to a 'B' rating in response to the proposed EU bailout and instability of the nation's banks. The credit score diverted investors and made it much harder to borrow money and make any substantial investments that could help stimulate growth in the near future.
2012 in Spain was marked by soaring unemployment, property price reductions by up to 60% and failing industries across the board. Six years on, Spain has one of the fastest growing economies in the EU. GDP grew by 3.1% in 2017 and is forecast to continue to see similar growth in 2018 and 2019 While unemployment remains high at 16.7%, levels have been falling steadily for three years in a row, and Spain's central government deficit is expected to fall to 3.1% in 2018, down from 4.5% in 2016.
The Spanish banking sector's overall credit fundamentals have steadily improved over the last two years. Reducing its debt by approximately 25% since 2015, Spanish banks have now entered sustained levels of recovery, with further room for growth in the near future.