Historically characterized by persistent external debt, Spain has undergone a significant economic transformation since the 2008 financial crisis.

As of 2024, the non-monetary private sector, comprising businesses and households, achieved a positive net international investment position of €40 billion, marking a pivotal shift.

This figure represents approximately 2.5% of the country's GDP, indicating a transition from a long-standing dependency on foreign savings to a state where Spain's private sector possesses more assets abroad than liabilities.

The reduction of debt among businesses and households has played a significant role in this turnaround, particularly through increased investments in foreign assets.

Internal savings have been reallocated towards international investments, generating profitability for the private sector.

However, this trend raises concerns as the capital directed abroad is not reinvested within Spain, contributing to stagnant productivity growth rates since the early 2000s.

At the height of the real estate bubble, Spanish households and non-financial firms accumulated external liabilities exceeding €400 billion, nearly 40% of the GDP. The recent reversal to a positive net position is seen as a historical achievement, with the Banco de España reporting the first positive balance since the inception of record-keeping in 1993.

Spain's historical economic pattern typically saw increased indebtedness during periods of growth, as households and companies financed their expenditure through foreign savings.

Following the crisis, a marked shift in mentality towards saving emerged.

By 2024, Spain's financing capacity achieved a record high of €67 billion, representing 4.2% of GDP.

Decades of saving have now transitioned from primarily debt reduction to international asset acquisition.

Data shows that non-monetary firms and households held €1.74 trillion in foreign assets as of the end of 2024, indicating that foreign investment has doubled within the past decade.

Much of the private sector's foreign investment is facilitated through financial vehicles such as investment funds, insurance, and pension plans.

These entities play a crucial role in managing the savings of millions of households and significantly influence overseas investment decisions.

Over the past year, the volume of managed foreign assets surged by €68.4 billion, reaching €730 billion, with a positive creditor balance of €392 billion.

While non-financial firms continue to report a negative external position, there has been a noticeable decline in this debt.

This imbalance can be attributed to the substantial presence of multinational corporations in Spain and the external financing extended to major Spanish firms that frequently issue debt instruments in global markets.

However, the growing external presence of Spanish firms is serving to offset this deficit.

Evidence shows that Spanish companies hold €730 billion in foreign financial assets, a 96% increase from the peak of the real estate bubble.

In tandem, foreign liabilities increased by 63%, totaling €1.36 trillion.

Spanish banks have also rectified their deficits from the prior economic bubble.

By the end of 2024, banks reported a positive balance of nearly €70 billion with the outside world.

This accumulation of foreign assets places Spain in a comparatively strong financial position not observed in previous decades.

In times of economic downturn, this wealth abroad may bolster investor confidence in the country’s repayment capacity, potentially mitigating risks associated with market scrutiny.

In contrast, public administrations still retain significant external debt, amounting to €640 billion, with the Banco de España holding a liability of €170 billion primarily attributed to asset purchase programs from the European Central Bank.

Overall, Spain concluded 2024 with a negative external balance of €700 billion, equivalent to 44% of its GDP, the best outcome since 2002. This marks a return to pre-bubble levels of external debt, albeit with a shifting trend that indicates continued de-leveraging and accumulation of foreign assets.

While the country retains considerable savings, it faces challenges regarding the generation of productive investment.