Moonfare’s Chief Economist, Mike O’Sullivan, is travelling the world to bring you insights into each country’s unique economic landscape. His analysis covers macroeconomic trends, local market dynamics and implications for private investors.

Follow Mike right here on the Moonfare blog or through our LinkedIn account as he explores financial hubs like London, Dubai, Vienna and many others, starting in — Madrid.

Madrid, 10. 10. 2024

‍Arrived in Madrid a couple of days before the national holiday on the 12 October. First impression is that I have never seen the city as ‘sleek’ or well presented, and it must be said, as expensive. Note that Spain now has a slightly lower interest rate (bond yield) than France, and a considerably higher rate of growth than Germany.

The economy appears strong, despite concerns that many people have about the state of Spanish democracy and its finely balanced political situation — there is likely a contentious budget on the horizon.

There are a lot more Latin Americans than I had expected, and this has both helped tourism, and pushed up house prices (to the ire of some locals). Spain’s golden visa system means that it is the recipient of wealthier Latin Americans leaving countries like Venezuela. At the same time, quite a number of Spanish businesses and executives are relocating to Lisbon, which is a warning sign for innovation.

Having flown in from Berlin I was expecting a positive change in the weather, but an intense rain storm washed its way through the city, closing the park in the city centre (falling branches are a serious problem), which upset my morning run.

Many new bars and restaurants, to accompany the existing established ones — so as ever a great city to visit. Is it good for investment? The venture ecosystem is beginning to grow, and Spain has some interesting technology policies — a regulatory ‘sandbox’ for AI development. Interest in private equity investing is also, manifestly, picking up though it is obvious that local tax laws skew this.