CAPTURE THE OPPORTUNITY IN SPAIN

Transcription

1 CAPTURE THE OPPORTUNITY IN SPAIN BUSINESS SWEDEN March 2016 Madrid

2 SPAIN ONE OF THE OCCIDENT S FASTEST GROWING COUNTRIES EXECUTIVE SUMMARY Spain has a GDP per capita of 23,300 EUR (2015). The economic growth forecast is very positive, with expected increase by 3% yearly until Spain is today world s 13 th, and Europe s 5 th largest economy. With over 500 million native Spanish speakers in the world, Spain is a good first step to take before a South American expansion. For the same reasons, many South American multinational companies are placing their European HQ s in Spain. After the financial crisis in 2008, the country is now recovering. Both import and export are growing with continued positive forecast. Export has in particular grown to non-eu countries (+37.4% in 2013) Import are expected to increase by approximately 6% per year until Spain is ranked as Europe s 4 th most attractive country for foreign direct investments and was between Europe s 2 nd destination for Greenfield investments BUSINESS SWEDEN IN SPAIN Business Sweden s office in Madrid has eight employees with extensive market knowledge and long experience of how to do business in Spain. We have established strong networks and clusters in sectors such as ICT, Mining, and Health care & Life science in which we establish and strengthen business relationships as well as enabling knowledge exchange. Our other key sectors are aerospace and automotive. The Swedish brand is strong in Spain and we see great potential for Swedish companies with different types of efficiency-enhancing solutions within both private and public sector. We also observe increased activities and good opportunities for company acquisitions. Welcome to Spain! Malin Svensson Trade Commissioner to Spain WORLDBANK, ICEX, EUROPEAN COMMISSION, IMF, EY S ATTRACTIVENESS SURVEY EUROPE 2015 BUSINESS SWEDEN 30 MARCH,

3 SPAIN IS ON THE COMEBACK RECOVERING FROM THE FINANCIAL CRISIS Spain had a rapid economic growth during the 1990s and early 2000s which encouraged a property boom. When the global credit crisis occurred in 2008, the Spanish property market collapsed and left the country s economy in a deep recession. Over three million jobs disappeared between 2008 and The results from years of hard financial reforms, tax raises and stagnated salaries are now being visible. The decline of the national economy came to an end during 2013, future prognoses are positive and Spain is now one of the fastest growing countries in the Occident region. Unemployment remains high but has decreased to 20.9% which is the lowest rate since 2010 DEVELOPMENT OF SPANISH GDP (BILLION USD) WORLDBANK, EUROPEAN COMMISSION, ICEX BUSINESS SWEDEN 30 MARCH,

4 SPANISH IMPORT IS ABOUT TO EXCEED PRE-CRISIS LEVELS DEVELOPMENT OF SPAIN S IMPORT, (BILLION EURO) f2015f2016f PRODUCT CATEGORIES WITH MAJOR GROWTH (2013/2014) Metals, raw materials Machinery for manufacturing industry Vehicles commercial and private Motorcycles and cycles Fuel wood & wood charcoal Fixed vegetable fats & oils, crude, refined, Civil engineering & Contractors plant & equipment Lighting fixtures and fittings Fabrication/Construction materials lime, concrete Meat Wheat Clothing, accessories and fabrics WORLDBANK, EUROMONITOR, EUROPEAN COMMISSION BUSINESS SWEDEN 30 MARCH,

5 SWEDISH EXPORT TO SPAIN SPAIN IS SWEDEN'S 14 TH MOST IMPORTANT TRADE PARTNER Sweden s total export to Spain amounted to 2.3 billion EUR (2014) The biggest export sector to Spain, telecom, is to a large extent focused to Madrid, which is a region with strong focus on public administration, bank & finance, telecom and industry. Telecom is one of Business Sweden s focus sectors and are having a close relationship and collaboration with Ericsson and Telefonica. We are also involving the ICT/telecom sector in the initiatives created on the Energy & environment sectors platform SymbioCity which we successfully have been developing in Spain since Northern Spain, from Galicia to Catalonia are having a strong tradition of industrial activities and manufacturing, which is where a big part of the raw materials Sweden exports to Spain goes to. Here is also where a great part of the car industry of Spain, the worlds 2 nd biggest vehicle manufacturer, is concentrated to. RANKING OF MAIN CATEGORIES IMPORTED FROM SWEDEN TO SPAIN, 2014 (MILLION EURO) 42,6 46,6 26,7 59, ,6 72,2 19,5 73,3 133,5 95,5 Telecommunications equipment Pulp and paper Steel products Fuels and lubricants Pharmachemistry Automotive equipment, components and accessories Raw materials for paper industry Fresh fish Raw materials and semiprocessed plastic Machinery and equipment Grain ICEX, SCB BUSINESS SWEDEN 30 MARCH,

6 ACCESS NEW MARKETS THROUGH SPANISH PARTNERS SPANISH EXPORT IS EXPECTED TO INCREASE BY 5,4% Mexico Central America Colombia Venezuela Ecuador Brasil Peru Paraguay Chile Uruguay Argentina MORE THAN 500 MILLION PEOPLE IN THE WORLD ARE NATIVE SPANISH SPEAKERS SOURCE: EUROPEAN COMMISSION BUSINESS SWEDEN 30 MARCH,

7 THE SWEDISH BRAND SCORES HIGH INTERNATIONALLY AND IN SPAIN CARING, OPEN, AUTHENTIC, INNOVATIVE Sweden is a country with a good reputation and scores high in world rankings such as Anholt-GfK Ropers Nation Brands Index 2014 where we are ranked #10, and WIPO s Global Innovation Index 2014 where we are placed #3. Our values and beliefs are well established in Spain and Sweden is associated with quality, seriousness and trust, which make Swedish business partners well seen here. THE IMAGE OF SWEDEN AS A PROGRESSIVE AND INNOVATIVE NATION IS WELL ESTABLISHED IN SPAIN. CECILIA JULIN, AMBASSADOR OF SWEDEN TO SPAIN SWEDISH INSTITUTE, WIPO, ANHOLT-GFK ROPERS, BUSINESS SWEDEN BUSINESS SWEDEN 30 MARCH,

8 SPAIN IS RANKED EUROPE S 4TH MOST ATTRACTIVE DESTINATION FOR FDI THE FLOW OF FOREIGN DIRECT INVESTMENTS Billion USD KEY FACTORS IN SPAIN S ATTRACTIVENESS FOR FDI Promising economical growth prognoses Lower energy prices Weaker euro An improved macroeconomic environment through quantitative easing lower inflation, interest rates, higher growth Continued restructuring and privatisation of state-owned companies MAJOR FDI GROWTH 2014, SECTORS Financial and business services Manufacturing Transport Communications MAJOR FDI GROWTH 2014, REGIONS Basque Country Catalonia Madrid SOURCE: OECD, UNCTAD, EY S ATTRACTIVENESS SURVEY EUROPE 2015, ICEX BUSINESS SWEDEN 30 MARCH,

9 POSITIVE OUTCOMES FROM THE FINANCIAL CRISIS EVERYTHING BAD COMES WITH SOMETHING GOOD Making it easier doing business New law was adopted in 2010 to reduce payment times. From 2013 invoices has to be payed within 60 days, and within 30 days for public authorities and a few exceptional sectors, such as fresh and perishable products. In the aftermath of the economical recession, many weak companies have been forced to close down their business, which leaves the more solid operations still running. The country has become more internationalised during the crisis. One of the key factors to the economic recovery has been the increased exportation which encourages openness to trade with other nations that promotes both ability to export to Spain, but also via partners in Spain to sell on to new markets such as Latin America. Facilitating establishment There are a wide range of aid instruments and incentives to benefit from, depending on sector, region, activity etc. Modifications in the Spanish labour legislation has enabled the labour market to be more flexible and modernized by offering a number of different types of employments. Lower corporate tax rates, from 30% to 28% on 1 of January 2015 and further reduction during the year down to 25% in Comparative advantage in labour, location and energy cost. BOE NO 163, JULY 2010, ICEX, EUROPEAN COMMISSION BUSINESS SWEDEN 30 MARCH,

10 >400 SWEDISH COMPANIES HAVE LOCAL ESTABLISHMENT IN SPAIN EXAMPLES OF SWEDISH COMPANIES DOING BUSINESS IN SPAIN Large sized companies Small and medium sized companies ABB Alfa Laval Astra Zeneca Atlas Copco Autoliv Cederroth Diaverum Elekta Ericsson Gunnebo Sandvik SCA Scania SKF Trelleborg Volvo Cars Aura Light AxFlow Bluefish Pharmacepticals Bona Cassandra Oil Eltel Networks Lindorff Izettle Make up Store Nederman Roxtec Scan Coin Sobi Snow Software Verisec SWEDISH COMPANIES ARE CREATING NEARLY JOBS IN SPAIN SOURCE. BUSINESS SWEDEN, SWEDISH EMBASSY IN SPAIN, PRESENCIA ECONOMICA DE SUECIA EN ESPAÑA BUSINESS SWEDEN 30 MARCH,

11 PROJECTS AS PART OF SPAIN S GROWTH PLANS 1.3 B EUR to improve commuter train services The biggest commuter train investment in 20 years (1 257 M EUR) in order to improve commuter train services and gain 22 million new passengers. Trains and stations will be modernised, level crossings removed, improvements and implementations of new passenger information systems. Single European energy market Spain has been applying for 25.1 B EUR for the projects to create a single European energy market as part of the European Commission s Investment Plan for Europe. Renewal energy plan The ministry of industry, energy and tourism are spending 7 B EUR per year to reach the goal of >20 % of the country's energy consumption has to be renewal energy. R&D within defence industry Spanish Ministry of Defence will spend 263,6 M EUR on R&D for the combat and communications system of the new frigate F-110 and further development of the combat vehicle 8x8. Improved infrastructure for national harbours The European Investment Bank (EIB) has supported Spain with 50 M EUR for infrastructure investments to improve interoperability between maritime and other means of transport and improve efficiency in ports. SOURCE: IDAE, EL MUNDO , MINISTERIO DE FOMENTO ESPAÑA, EUROPEAN COMMISSION BUSINESS SWEDEN 30 MARCH,

12 THE MOST PROMISING SECTORS IN SPAIN Spain is a leader in advanced technologies and one of Europe s most important ICT market worth 88,2 B EUR. Spanish companies such as Telefonica, Indra, Abertis, Amadeus are present and well recognized internationally. Most mayor car manufacturer are established in Spain which is the 2 nd largest manufacturer in the world. Turnover 28 M EUR and 87% of production was exported (2013). Spanish Logistics sector ranks among the top-20 in the world, and 11 th in Europe. Turnover in 2014 was 98 B EUR and has been growing 7% over the last three years. ICT Automotive Logistics and Transport Environment and Water The total amount of public investments planned for within energy is 58 B EUR much in relation to energy efficiency and developing interconnections between the EU countries to create a single European energy market. SOURCE. BUSINESS SWEDEN, MARKETLINE APRIL 2014, MITYC, TEDAE ANNUAL REPORT 2013 Aerospace / Defence Spain is one of few countries in the world that can produce a complete aircraft. The aerospace industry s turnover in 2013 was 13,8 BEUR and has almost doubled since Moreover, the sub-sector had a turnover of 737 M EUR in Biotechnology, Pharmacy & Life Science The biotechnology sector accounted for 7.8% of Spain s GDP in Biotech companies are growing faster here than in any other countries. Spain is 10th world scientific power and 5th by scientific production in the EU15. Out of 425 pharma companies, 60% are foreign companies. BUSINESS SWEDEN 30 MARCH,

13 CONTACT US BUSINESS SWEDEN IN SPAIN Business Sweden C/ Alcalá 79, 1B Madrid - Spain T F spain@business-sweden.se