While many major European economies are struggling to regain momentum, Spain has emerged as a standout performer, earning a rare “hat-trick” of credit rating upgrades from Fitch, Moody’s, and S&P Global — three of the world’s leading agencies.
This series of upgrades signals growing investor confidence in Spain’s ability to sustain growth and strengthen its fiscal position.
In its latest review, Fitch Ratings upgraded Spain’s long-term credit rating from “A-” to “A”, citing favorable growth prospects and strong external resilience.
“Recent productivity gains, moderate wage growth, and relatively low energy prices have boosted external competitiveness and strengthened private-sector balance sheets,” Fitch said in a statement.
The agency also noted that Spain remains largely insulated from U.S. tariffs and continues to reduce its external debt, enhancing overall economic sustainability.
Shortly after, Moody’s raised Spain’s rating by one notch to “A3” from “Baa1”, pointing to an increasingly diversified and resilient economy.
According to Moody’s, the upgrade reflects confidence in Spain’s labor market reforms, robust banking system, and shift toward non-traditional growth sectors.
The economy has recently gained strength from foreign investment, a booming tourism sector, and steady immigration flows — all of which have contributed to sustained expansion.
Earlier this month, the Spanish government raised its GDP growth forecast for 2025 to 2.7%, up from 2.6%, significantly above the 1.2% expected for the broader euro area.
Echoing the optimism, S&P Global also upgraded Spain’s rating, highlighting notable improvements in the country’s fiscal position and greater resilience to external shocks.
According to Judith Arnal, Senior Fellow at the Elcano Royal Institute in Madrid, Spain has firmly established itself as the growth leader among major euro area economies in recent years.
“Spain’s growth is no longer driven solely by tourism,” she said. “Dynamic non-tourism services — including business consulting, telecommunications, and IT — are now key contributors. This shift underscores Spain’s growing competitiveness and export capacity beyond traditional sectors.”
Arnal also pointed out that more than half of all jobs created since 2020 have gone to immigrants, which has supported overall GDP growth but limited gains in per capita income — a sign that Spain’s expansion remains broad-based rather than productivity-led.
Although political uncertainty has not derailed Spain’s momentum, analysts emphasize that structural and fiscal reforms will determine whether this growth can be sustained.
“The Spanish government is eager to highlight this period of strong performance,” Arnal added, “but fiscal consolidation and long-term reforms will be the true test of its economic resilience.”
The triple credit upgrade marks a milestone for Spain, lowering borrowing costs and reinforcing international confidence in its economy.
If Madrid continues to maintain fiscal discipline and advance key structural reforms, Spain could well become a model of sustainable growth for Europe in the decade ahead.
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