Spanish Prime Minister Pedro Sanchez sets out after a press conference at the 4th UN International Conference in Seville on July 1, 2025.
Christina Quicler | AFP | Getty Images
The Spanish government has received yet another boost from credit rating agencies, with Fitch and Moody joining the S&P to raise ratings for each of the countries.
The trick to rating ratings comes as the Spanish economy continues to outperform its European peers, and the country’s government and central banks have recently upgraded its 2025 growth forecast.
Fitch on Friday revised Spain’s long-term rating from “A” to “A” upwards, citing the outlook for Spain’s favorable growth.
“Recent productivity gains, moderate wage growth and relatively low energy prices have made them more competitive outside and strengthened the private external balance sheet,” Fitch said in a statement.
The rating agency added that it hopes Spain’s economy will remain resilient.
The Moody’s also raised the Spanish rating last week by one notch, up from “baa1” to “A3.” The decision said it reflects the view that Madrid’s economic strength is improving due to a more balanced growth model, improved labor markets and a more robust banking sector.
Spain’s economy has moved from recent strength to strength, strengthened by foreign investment, tourism and immigration.
The country’s government said earlier this month that it expects gross domestic product (GDP) to grow by 2.7% this year, significantly exceeding expectations for 1.2% growth seen in the broader euro region, from its previous forecast of 2.6%.
Earlier this month, S&P Global gave Spain an valuation upgrade, citing “notable improvements” in the country’s balance sheet and increased resilience to economic shocks.
“Structural reform is a true test.”
Judith Arnaru, a senior fellow at the Royal Institute of Elcano, a Madrid think tank, said Spain has emerged as a clear growth leader in the largest economy in the Euro region in recent years.
“Spain’s growth relies not only on booming tourism, but also on dynamic non-tourism services such as business, communications and IT services. This indicates a shift in the country’s growth patterns, indicating that Spain has competitive companies that can export beyond the traditional sector.
“Growth is also closely linked to demographic dynamics and job creation. More than half of the jobs created since 2020 have been featured by immigrants, supporting the overall expansion of GDP, but per capita GDP has not been very strong.
Looking ahead, Arnal said political uncertainty has not prevented Spain from hampering eurozone growth, but if stability is increased, the country’s economic performance could be even better.
“The Spanish government is keen to showcase this period of high growth, but financial integration and structural reform are a true test of mid-term,” Arnal said.
