Spain loses €38 Bln in foreign investment 2011 to Nov

 

Spain lost €38.6 billion of foreign investment in the property market during 2011 (up until November, when the new PP Administration was voted into government), as the economy saw an escalating number of foreigners lose confidence in Spanish property.

This figure had increased significantly from the €24.1 billion lost in the same period a year earlier.

Meanwhile, the Bank of Spain reported how the country's current account deficit shrank from €45.8 billion, to €36.2 billion in the period.

Spain's 10-year borrowing costs fell from 6% at the end of November to 5% last month, helped by the three-year loans the European Central Bank began offering the country's banks recently..

However, just last week the Minister for the Economy, Luis de Guindos, commented that "real foreign money" is returning to the country in the form of the purchase of government bonds.