The Barometer on the Climate and Outlook for Spanish Investment in the UK is an annual report led and published by the Spanish Chamber of Commerce in the UK since 2019. The report is divided into two sections: the first offers an analysis of the latest available data on the value of Spanish investment in the UK, while the second presents insights into Spanish investors’ perceptions of the British market’s attractiveness, drawn from a survey of over 100 companies.
The collection of this information allows each Barometer to serve as an official source of data for anyone involved in the British-Spanish business community or interested in joining it. Having reached the 6th edition of the Barometer this year, the report has consolidated itself as a valuable tool for analysing the journey of the Spanish investment in the UK in the context of continued global economic turbulence.
Additionally, the event at which the Barometer is presented has also become a must-attend occasion: it gathers British and Spanish representatives from diverse areas such as government, diplomacy, and private companies at the end of each year. Held at the Spanish Embassy in London, this event also hosts high-level panellists from key Spanish investors in the UK.
The Barometer on the Climate and Outlook for Spanish Investment in the UK is the most up-to-date key reference publication for investors and businesses. By providing comprehensive insights and analyses, this publication will serve as a resource for understanding the evolving landscape of investment opportunities, helping stakeholders make informed decisions when operating in the dynamic UK market. The Chamber will present the sixth edition of this publication on the 3rd December 2024.
Each edition of the report can be accessed below:
I BAROMETER – 2019II BAROMETER – 2020
III BAROMETER – 2021
IV BAROMETER – 2022
V BAROMETER – 2023
VI BAROMETER – 2024
SUMMARY OF EACH EDITION
I Barometer
The I Barometer was held on the 26th February 2019. The event welcomed the Spanish Minister for Trade, Ms. Xiana Méndez; the British Minister for Investment, the Rt. Hon. Graham Stuart MP; and H.E. Carlos Bastarreche, the Ambassador of Spain to the UK. The key findings from the report were presented by Mr. Gonzalo García Andrés, Chief Economist at Analistas Financieros Internacionales (Afi). The report showed that despite the substantial uncertainty surrounding Brexit, interest from Spanish investors in the UK market had not declined significantly since the 2016 referendum. Regarding the financial climate in the age of Brexit, the report’s findings showed that free trade in goods and services is considered by Spanish companies to be of the utmost importance in the Brexit negotiations, with a view of mitigating the impact on economic relations between Spain and the UK. The panelists who took part in the round table to discuss the Spanish investment climate in the UK were: Mr. Ramón Ramírez, Managing Director, IDOM UK; Mr. Michael Charlton, Managing Director & Chief Investment Officer, DIT; Mr. Ignacio Casajús, CEO, Exolum; Mr. Michael Harfleet, UK Chairman, CEREALTO SIRO; and Mr. Albert Coll, Head of Sabadell UK. This panel was moderated by Mr. James Murray, Bloomberg.
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II Barometer
The II Barometer was held on the 27th October 2020 as a hybrid event. The keynote speakers at this event were the Spanish Minister for Trade, Ms. Xiana Méndez; the Minister for Investment from the DIT and BEIS, Lord Gerry Grimstone; as well as H.E. the Ambassador of Spain, Mr. Carlos Bastarreche. The key findings from the report were presented by Mr. Gonzalo García Andrés, Chief Economist from Afi. The results showed that a comparison with the figures from the 2019 Barometer evidenced how the UK’s position as a destination for Spanish investment had remained stable despite Brexit. However, the expectations of Spanish companies currently active in the UK pointed to a drop in activity in 2020, although with an expected rebound in 2021 in terms of turnover, employment and investment. Expectations had also been affected by the impact of the crisis caused by Covid-19. The panel discussion in 2020 was moderated by Mr. Constantin Cotzias, Director of Bloomberg Europe. The companies’ perspective were shared by Mr. Karl Goose, UK and Ireland Managing Director at Ferrovial Construction; Mr. Ignacio Casajús, CEO, Exolum; and Mr. Alfonso Álvarez, Deputy Managing Director at Cellnex UK. Mr. Álvaro Nadal, Head of the Economic and Commercial Office, Spanish Embassy and Mr. Michael Charlton, Managing Director & Chief Investment Officer, DIT, participated in a second panel discussion by sharing the public sector viewpoint.
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III Barometer
The III Barometer was presented and discussed on the 10th November 2021.The Chamber once again welcomed the Spanish Minister for Trade, Ms. Xiana Méndez; Lord Gerry Grimstone; as well as H.E. José Pascual Marco, Spanish Ambassador to the UK. For this edition, we were also joined by H.E. Hugh Elliott, British Ambassador to Spain. Mr. José Manuel Amor, Partner at Afi, presented the key findings of the III Barometer. The report found that the UK had retained its position as the most important destination for Spanish outward investment. Although over half of Spanish companies invested in the UK rated the British business climate in the wake of Brexit as ‘acceptable’ or ‘good’, their perception of the labour market had deteriorated: one-quarter of the firms surveyed reported not being able to find the skills they needed. Though the new UK-EU TCA had put an end to uncertainties over Brexit, one third of the respondents rated transport and energy services as ‘inadequate’, as well as increasing perceived barriers to entry into the market. The panel discussions were moderated by Mr. Peter Foster, Public Policy Editor at the Financial Times. Panellists Mr. John Carroll, Head of International, Santander UK; Mr. Ignacio Casajús, CEO, Exolum; Mr. Alfonso Álvarez, Deputy Managing Director, Cellnex; and Mr. Esteban García de Motiloa, Manager, Corporate Diplomacy & European Affairs, Gestamp, shared intelligent and thought-provoking opinions and ideas. The second panel discussion focused on the public view on the climate and outlook for Spanish investment in the UK. The panel was made up of Mr. Álvaro Nadal, Head of the Economic and Commercial Office of Spain in the UK and Ms. Lucy Buzzoni, Director Investment (interim), DIT.
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IV Barometer
The IV Barometer was held on the 16th November 2022. The event was opened by the Spanish Minister for Trade, Ms. Xiana Méndez; the Minister of State, the Rt Hon Greg Hands MP and was hosted by H.E the Spanish Ambassador, Mr. José Pascual Marco and the President of the Spanish Chamber of Commerce, Mr. Eduardo Barrachina. The highlights from the report were displayed by Mr. José Manuel Amor, Partner at Analistas Financieros Internacionales (Afi).
Despite global challenges like inflation and geopolitical tensions, the UK remains a key place for Spanish investment. In 2020, it made up 13% of Spanish foreign investment, creating 170,000 jobs.
Recent data shows ups and downs in Spanish investment, with €155.8 billion coming into the UK since 1993. There was a surge in 2021, but a significant drop in the second quarter of 2022. Despite past uncertainties due to Brexit, Spanish businesses in the UK feel positive about the business environment. Looking forward, there’s optimism among Spanish companies, expecting more growth in the UK in 2023. The enduring strength of economic ties and the strategic importance of the UK market continue to drive confidence and investment.
Three round tables about the energy crisis and the net-zero transition in the UK, the public side view and the UK economy two years after Brexit; and were moderated by Mr. Peter Foster, Public Policy Editor at the Financial Times.
The panellists that took part were: Mr. Anselmo Andrade, UK Country Manager, BBVA UK, Mr. Karl Goose, CEO of Ferrovial Construction, Mr. Alfonso Álvarez, Deputy Managing Director at Cellnex UK, Ms. Hazel Gulliver, Director of Engagement at Scottish Power; Ms. Andrea Lamadrid, Sustainable Finance & ESG Advisory, Caixabank; Mr. Fernando Navarro, Partner at White & Case; Mr. Álvaro Nadal, Head of the Economic and Commercial Office, Spanish Embassy and Mr. Gus Wiseman, Deputy Director Investment Opportunities & Propositions at Department of International Trade
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V Barometer
The V Barometer was presented on the 13th December 2023. The event welcomed once again the Spanish Minister for Trade, Ms. Xiana Méndez; the Minister for Enterprise, Markets and Small Business, Mr. Kevin Hollinrake MP, and was hosted by H.E the Spanish Ambassador, Mr. José Pascual Marco and the President of the Spanish Chamber of Commerce, Mr. Eduardo Barrachina. The report was presented by Ms. María Romero Paniagua, Managing Partner at Analistas Financieros Internacionales (Afi). The Baroness Ludford was in charge of the closing remarks.
The report showed that in 2023, inflation emerged as the primary economic concern, prompting central banks to adjust monetary policies. While economic expansion is anticipated in 2024 at a slower pace, inflation is expected to decrease but remain above set targets. The UK solidified its position as the top destination for Spanish foreign investment, experiencing a 22% growth in 2021, reaching €73.85 billion. Despite a slowdown in 2022 and the first half of 2023, the UK remains the primary recipient of Spanish investments, with positive expectations for 2024. Despite challenges such as inflation and workforce shortages, most Spanish companies in the UK plan to increase investments and activities, underscoring the ongoing strategic importance of the British market for 91% of surveyed firms.
The panel discussions were moderated by Mr. Peter Foster, Public Policy Editor at the Financial Times. The panellists were: Ms. Selena Strudwick, UK Legal Director, Ferrovial Construction; Mr. Daniel Feliu, Head of Customers, Marketing & Strategy, Santander UK; Mr. Juan Carlos Machuca, Partner and Head of London office, Uría Menéndez; Mr. Víctor Manuel Martínez García, Director, Air Traffic Management division at Indra; Mr. Joan Sintes Segarra, EMEA Sales and Marketing VP, Plain Concepts; Mr. Juan de la Cueva, CEO, Navantia UK; Mr. Álvaro Nadal, Head of the Economic and Commercial Office, Spanish Embassy and finally Mr. David Buck, Deputy Director Investment Strategy, Performance & Environment, Department for Business & Trade.
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VI Barometer
The VI Barometer was presented on the 3rd December 2024 at the Residence of the Spanish Ambassador, H.E. Mr. José Pascual Marco, and opened by Mr. Eduardo Barrachina, President of the Spanish Chamber of Commerce in the United Kingdom. Among the speakers were Mr. Douglas Alexander MP, UK Minister for Business and Trade; Ms. Amparo López Senovilla, Spanish Minister for Trade; and the Earl of Kinnoull.
The VI Barometer revealed that in the first half of 2024, Spanish direct investment into the United Kingdom increased twelvefold compared to the same period in 2023. This rebound follows a slowdown in 2023, marking a significant recovery driven by sectors such as telecommunications, real estate, and air transport. The UK remains the second-largest recipient of Spanish foreign direct investment, accounting for 14.5% of Spain’s FDI stock in 2022, valued at €79.5 billion. Since 1993, Spain has invested over €169 billion in the UK.
The surveyed companies identified inflation as their biggest challenge in 2024, followed by an increasingly pressing shortage of personnel, while emphasising the importance of improving EU-UK relations and UK labour market policies under the new government. Despite these challenges, over half of the firms expressed optimism for 2025, expecting growth in revenue, investments, and workforce in the UK.
The report was presented by Ms. María Romero Paniagua and Mr. José Manuel Amor (Board Member of the British Chamber of Commerce in Spain), Managing Partners at Analistas Financieros Internacionales (Afi). The panel discussions were moderated by Mr. Peter Foster, Public Policy Editor at the Financial Times. The panellists included: Ms. Beatriz Casares Echenique, BBVA; Ms. Yufan Cai, Exolum; Mr. José Jacinto Monge Bravo, Indra; Mr. Brian Magson, Senior Global Banker, Sabadell UK; Ms. Hazel Gulliver, Scottish Power; Mr. Juan Carlos Machuca, Partner, Uría Menéndez; Mr. Gonzalo García Andrés, Head of the Economic and Commercial Office, Spanish Embassy; Ms. Cathryn Law, Department for Business & Trade. The Earl of Kinnoull delivered the closing remarks.
