Key View

• We at Fitch Solutions have revised our Short-Term Political Risk Index (STPRI) score for Spain down from 70.4 to 65.8, out of 100.
• Pressure on the current minority coalition government has continued to build, in part owing to Spain’s ongoing cost of living crisis.
• Tensions have also re-emerged between the central government and

Key View

• EV sales in Spain will remain at relatively low levels over 2022-2025, negatively affected by the slow development of its EV charging infrastructure.
• EV adoption across Spain will also be impacted by EV prices, likely to increase in the short-term due to the surge in the price of key metals used for battery manufacturing, and

Key View

• We at Fitch Solutions remain upbeat on the outlook for the Spanish economy, which we expect will expand by a further 5.4% in 2022 after 5.0% growth in 2021.
• Consumer spending will drive the recovery as the labour market continues to tighten, while fixed investment will remain supported by the government’s capital expenditure plans.

Key View

• Increased government healthcare funding will contribute to strengthen Spain’s healthcare system recovery in 2022.
• In order to reflect these changes, we at Fitch Solutions have revised upwards our forecasts for government healthcare spending in 2022.
• However, while robust economic growth momentum will enable the Spanish government to

Key View

• Refined strategy aims to boost innovation in the country over the coming years, however pharmaceutical growth will be tempered by a growing focus on cost-containment.
• Tax incentives and preferential treatment will encourage local drug production, boosting drugmaker revenues in the country.
• Industry investment will improve overall

Key View

• Above-consensus real GDP growth in Q221 has reinforced our bullish view on Spain in 2021, when we expect that the economy will grow well above trend at 6.8%.
• Eurostat data showed that real GDP increased by 2.8% q-o-q (19.8% y-o-y) in Q221; households will continue to drive the recovery over the remainder of 2021 and in 2022.
• Risks

Key View

• The medical devices market in Spain will grow by a robust mid-single digit five year CAGR in local currency terms, and in US dollar terms, will be propped up by appreciation of the euro against the dollar over coming years.
• Growth in the medical devices market will be supported by a recovering economy, growing at above-consensus

Key View

• Spain's electric vehicle charging infrastructure sector offers moderate growth potential, with our Autos team forecasting the market's EV fleet to exceed 1.6mn in 2030 from 87,000 in 2020, though this increase is muted relative to other Western European markets over the decade.
• The deployment of the EU's 'Next Generation EU' recovery