With respect to macroeconomic imbalances, Spain has severe exposure to fiscal risks (the potential for sovereign debt default due to unsustainable borrowing practices), inflation, government debt and budget balance. The current account deficit level is also worrisome, especially compared to the rest of Western Europe, however, the trade balance is slightly on the positive side, indicating that Spain could potentially turn things around if it can fix its structural issues first. Nevertheless, this will be a long recovery for Spain.
In terms of economic disparity, Spain fairs poorly, even when compared to its peer group of Western Europe. Particular indicators of concern are the high exposure to inflation, demographic shifts (for example, an aging population) exacerbated by youth unemployment, relatively low access to loans for entrepreneurs, and high incidence of brain drain, or skills migration, as qualified skilled workers emigrate in search of jobs.
NOTE: The risk bars indicate the world distribution of the particular risk, from the lowest scoring country to the highest. The lower the score, the lower the risk or exposure to the particular indicator (i.e. a lower score is always positive).
All data is sourced from Zurich Risk Room