(Bloomberg) -- Spain is currently in a sweet spot as its growth outstrips regional peers and investors pile into its debt, the head of Spain’s Treasury Paula Conthe said.
“The Spanish economy has performed extremely well and that is something the market is recognizing,” Conthe said at Bloomberg’s Future of Finance summit in Madrid on Wednesday, highlighting that all the country’s 2024 bond issues have been oversubscribed.
The yield on Spanish 10-year debt has fallen 50 basis points from a peak in July, while its French counterpart has only dropped 35 basis points, pushing Spain’s borrowing costs below those of its bigger neighbor for the first time since 2007.
The government last month upgraded its economic forecasts, saying gross domestic product is expected to rise by 2.7% in 2024, compared with a previous prediction of 2.4%. That compares to 0.7% across the wider euro area, while Germany has given up hope of any growth this year.
“There’s been tense times in the markets and Spain’s risk premium has remained very stable and we are still seeing very strong investor demand,” Conthe said. “We have all the confidence in the fact that this is here to stay.”
--With assistance from James Hirai.
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