Exchange traded fund (ETF) investors might be shocked if there were to go abroad to Madrid and see what a business hub it is becoming. In the center of the city are four large office buildings being constructed. The structures will comprise the Four Towers enterprise park, and the first building is scheduled to be completed by the end of the year. These new office buildings are a potent symbol of the vitality and expansion of Spain’s commercial and political capital, as well as an example of the importance of construction to the country’s economy, reports Chris Johnston for The Times. The creation of the new business center could be one factor behind Spain’s iShares MSCI Spain Index (EWP) ETF rising performance. Currently, EWP is up 13.3% year-to-date.
The Spanish economy boomed from 1986 to 1990, averaging 5% annual growth. After a European-wide recession in the early 1990s, the Spanish economy resumed moderate growth starting in 1994. Spain’s mixed capitalist economy supports a gross domestic product (GDP) that, on a per capita basis, is 80% that of the four leading West European economies. Some of its leading industries include food and beverages, metals and metal manufactures, chemicals, shipbuilding, automobiles, according to the CIA World Factbook.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.