Moody’s Upgrades Spanish Economic Outlook

Ratings agency Moody’s has raised its outlook for Spain’s economy from “negative” to “stable”.

Moody’s said there had been a real improvement in the economy and government finances.

Last week, the Standard and Poor’s ratings firms also raised its outlook for Spain on signs of economic improvement.

Debt-laden Spain has emerged from a two-year recession, with export growth and companies becoming more confident.

But unemployment remains high, at 26%, and economic growth is expected to be shallow.

Nevertheless, Moody’s said: “The external accounts continue to improve, the situation in the labour market has stabilised and the private non-financial sector continues to deleverage.”

Moody’s left the overall rating for Spanish debt unchanged at Baa3 – just above junk-bond level – but the change in the outlook reduced the likelihood of another downgrade as the country works to rebound from its financial crisis.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza