More than 47% of businessmen express their increasing pessimism about the country and consider the general economic situation “not positive.” This analysis was carried out even though the group expects better dynamics in its sector and about half of the companies expect higher income over the next 12 months.
This month, the Department of Business presented the results of its research Business Survey 2025which brings together the vision of about 400 Spanish companies on the economic situation, corporate climate and their expectations for the coming year. Among the main concerns of businessmen are the lack of structural reforms and the lack of productivity and competitiveness compared to the rest of the European blockade countries, according to this diagnosis.
The survey, presented by the head of the department, Juan María Nin, and the head of the working group that prepared it, Miguel Iráburu, in cooperation with the Association of Economic Information Periodicals (APIE), reflects a continuing deterioration in companies’ perception of the regulatory environment and the relationship with the government.
91.6% of participants consider government intervention in economic activity to be exaggerated, while 89.4% negatively appreciate transparency in decision-making. Moreover, 86% indicated that there is a deterioration in legal security and institutional quality. All of these numbers are worse than those recorded in the 2024 survey.
The head of the department stressed that although there were widespread fears of an increase in the Corona virus after Donald Trump’s arrival in Casablanca, its impact on trade was minimal and “the noise diminished.” But what concerns businessmen most is the country’s productivity compared to the rest of Europe.
Spain will end 2024 with growth of around 3%, well above the European average. International Institute for Management Development (IMD) places the country at 39th in terms of competitiveness, which has been at a standstill for nearly a decade.
“The problem is structural,” said study coordinator Miguel Iráburu. “We have gone years without reforms that would improve productivity or the labor market.” He explained, “Spain is improving a little, but Europe is improving more. We have lost a relative position.”
Entrepreneurs identify the main challenges as low productivity (74%), weakness of European economies (40.4%), geopolitical uncertainty (62.8%) and high labor costs, especially after the accumulated increase in small and medium-sized industries in recent years and increased contributions.
Moreover, entrepreneurs negatively evaluate economic policy measures related to increasing fiscal pressure, contraction of the taxable bases of the Internal Revenue Fund (95.1% compared to 93.6% in the previous survey), new advances (94.5%) and imbalances in public accounts (90.2% compared to 87.9%).
The survey also indicates that the country maintains a youth rate of 25%, the highest in the European Union. The shortage of qualified talent particularly affects the technology and high-value sectors, which have accumulated more than 40,000 vacancies, Iraburu said.
Although 90% of companies realize that AI improves efficiency and diversification, they also see that a lack of internal training slows its full adoption.
The business community is also concerned about the spillover of assumptions and cascading exercises. In this regard, the Head of the Department stressed that, in his opinion, the absence of General Presupuestos del Estado during three years is a factor that weighs on economic activity and limits the ability of companies to plan in an environment characterized by increasing uncertainty.
“Three years without assumptions is bad luck, perhaps if it is appropriate to plan elections,” he said during the round of questions. Remember, the assumption is “a tool for analyzing reality, a tool for proposing action, and a tool of extraordinary democratic quality” that allows citizens to know “where expenditures are being taken and where money is being sold.”
More income, lower margins
Despite the good performance of sectors such as tourism and services, businessmen expect 2025 with somewhat higher income, but with a larger deficit.
Overall, 37.4% confirm that their sector’s situation in the fourth quarter of 2025 is good, and 36.1% maintain a good outlook for 2026. 46.3% expect an improvement in their revenues, but 42.3% believe their margins will decline in the next 12 months.
52% say that their factories will remain stable even without expansion, which indicates a majority. Domestic demand continues to drive growth, but private investment remains stagnant and remains below pre-pandemic levels.
Moreover, the trade balance is deteriorating: exports remain flat, but imports are growing by 4-5%.
European funds: a missed opportunity
One of the most scathing diagnoses in business circles revolves around the EU’s Next Generation programme, a fund that sought to transform the economic model and whose implementation is considered a failure.
75% of companies confirm that the funds “do not work”, and more than 60% decide not to request them in the face of bureaucratic complexity and the perception that they are mainly directed to large companies and the public sector.
Spain also faces the risk of not meeting the legislative milestones needed to receive a total of $77,000 million in grants and $84,000 million in soft loans, Iráburu noted. “We still have months to implement it and we are very late. The delay is worrying,” he said.
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