Despite the moments of slowdown experienced in recent years, The Spanish economy remains a solid system. Although with clear signs of exhaustion. However, experts remain optimistic about its future and expect that both banking and the ICT sector will play a fundamental role in boosting Spain's GDP.
This in an attempt to diversify the economy and aiming to digitalization as a means for the growth of both sectors. Whose influence is not only limited to their own businesses, but also extends to key industries such as retail, food and tourism. As a result, Spain's GDP remains on a positive trajectory.
Banking and ICT as key drivers of GDP in Spain
This according to the analysis of Advice Strategic Consultants, which reveals a possible economic recovery for 2024. Likewise, highlighting the fundamental role of certain companies that contributed to the growth of Spain's quarterly GDP, especially highlighting banking and ICT. Hence it is said that they are the key drivers for economic progress, due to their stability and sustainable development.
In line with this, the participation of recognized entities stands out, such as Banco Santander, Mercadona, Meliá Hotels Internatioanl, Iberdrola, S. A, Cellnex Telecom, Fundación La Caixa, CaixaBank, Telefónica, El Corte Inglés and Inditex. Basically, all those considered leaders in their respective sectors and that are expected to play a fundamental role in the recovery of Spanish GDP.
European Commission announces its full support for the banking and ICT sectors
In view of this positive performance, the European Commission decided to announce its support. This with the aim of establishing a “new model”, oriented towards sustainability and digital transformation, recognizing the importance of addressing current challenges. However, despite these statements, some analysts maintain that this is one of the worst recoveries in the history of Spain.
Because the economy presents two different faces in its performance. On the one hand, banking and ICT remain positive for Spain's GDP. While on the other hand, sectors such as agriculture and real estate are experiencing two consecutive quarters of recession, which represents an economic challenge. At the same time, they reflect the complex situation that exists right now in the region.
The future lies in digitalization and banking
It is for this reason that the European funds seek to cling to banking and the ICT sector, focusing their investments on these. Recognizing that his influences are not only limited to the economy, but also extend to the development of small and medium-sized businesses. In fact, according to data from the European Central Bank, SMEs represent 88% of all credit granted in recent months.
Therefore, both industries have a segmented influence among other economic sectors. Such as finance, real estate, agriculture, commerce and others. For this reason, the Advice report assures that Spaniards “have high expectations” regarding their recovery. Since they expect both banking and ICT to play a crucial role in widespread progress.
The Bank of Spain announces a worrying level of public debt
Despite favorable estimates, the Bank of Spain expressed concern about public debt. In this sense, warning that it could reach levels higher than GDP by mid-2025. An increase that is attributed to several factors, such as the tightening of monetary policies, disturbances in energy sector prices and geopolitical tensions.
This would put additional pressure on the economy. Therefore, the contributions of banking to ICT occur at a time when Spain's GDP is facing the expansion of public spending and gross debt. As revealed by the latest INE report, which highlights a significant increase of 1.3%. Therefore, prudent management of resources is necessary, and the adoption of measures that allow maintaining financial balance in the long term.
It is evident that There are items that require urgent attention within the Spanish economy. However, it is expected that banking and the influence of the ICT sector will help alleviate such problems. This is thanks to its financing capacity, both for innovative projects and for small companies that play a role in the economy. At the same time, digitalization helps improve efficiency and productivity in various sectors.