These five countries have made the greatest investments in Spain in the first half of 2023  

The Directorate General for International Trade and Investment reported that foreign direct investments (FDI) reached 11,996 million euros between January and June this year.

Amidst the complex economic context for Europe, with inflation and the war in Ukraine negatively affecting EU economies, foreign investments in Spain plunged 26.6% year-on-year, according to data from the country’s Ministry of Industry, Trade and Tourism.

The United States provided more than half of the investments coming from abroad. The country strengthened its position as the main investor in the Iberian country: its capital flows reached 6,131 million euros, well surpassing the figures of 2022.

Far behind the US are France, with investments worth 875 million euros, and Switzerland, with 778 million euros. Australia, in third place, contributed 746 million euros.  
A notorious case is that of the United Kingdom, which had invested 3,265 million euros in the first half of 2022 and now only allocated 605 million euros to Spain. Mexico, Germany, and Japan are sixth, seventh, and eighth on the list.

The industry that received the most capital so far this year was oil and gas extraction, with 28.3% of total investments, followed by health activities and telecommunications.

Madrid remains in the first position in terms of inflows from abroad, followed by Valencia. Catalonia, in third place, was well below its investment average for the last five years.

Spanish investments abroad also declined from January to June, reaching 8,753 million euros. This represents a 5.5% year-on-year reduction. Most of these investments were directed to the United States (36.7% of the total), Luxembourg (24.4% of the total), and Brazil (6.4% of the total). Insurance, reinsurance and pension funds, excluding compulsory social security, received the most capital.

Madrid was the autonomous community that allocated the largests amounts of money abroad, followed by Cantabria and Galicia. Catalonia, which usually ranks higher, was relegated to fourth place with flows more than 50% lower than in 2022.

Author: Marina Vanni