14.01.2020  The competitiveness of the Spanish economy: from recent achievements to medium-term challenges Spain Investors Day Pablo Hernández de Cos Governor  Good evening, ladies and gentlemen. Allow me to thank the Governing Board of Spain Investors Day and their chair, Benito Berceruelo, for kindly inviting me to speak to you on the tenth and therefore landmark anniversary of this annual international forum. Since its first edition, this meeting has become a showcase affording Spanish companies the advantage of offering a first-hand view of their position and prospects to foreign investors. I am convinced that the meeting will, once again, successfully contribute to boosting Spain’s image and international investment in our country. In my address I shall be analysing the competitiveness of the Spanish economy over this past ten-year period. For me, there is no better variable than competitiveness for describing some of the structural changes our economy has undergone in the past decade. It also allows me to highlight some of the main challenges lying ahead, including those stemming from the new protectionist tendencies that have arisen in the past two years. Achievements In fact, competitiveness symbolises the metamorphosis of our economy in the past decade. And, as a result, the improvement in the external imbalance is the most visible feature of the progress made since the crisis in correcting the economy’s main macrofinancial imbalances. Indeed, the external surpluses posted since 2012 are a strongly distinctive feature when set against the external deficits that had systematically characterised previous upturns.

Important industries, such as the financial industry or that of machineries are undergoing the worst situation over 50 recent years and governments of these countries are obliged to approve aid packages, to guarantee their survival. According to the most optimistic assessment, this situation will not be improved, at least until the end of this year. Therefore, I emphasise that exporters should adopt new philosophies. They should be innovators, increase products and discover new markets, beyond the traditional ones, which have currently been hit from the economic and financial crisis. Global developments impose adoption of new approaches. The country’s economic and financial development stage and passing into the group of the developing countries have created conditions for businesses in general and export industries in particular to adopt new standards in business management. Businesses should understand that the optimal regime of their activity requires new elements. Current developments of the world economy make necessary the increase of prudence for managing the financial asset portfolio, overall risk and exchange rate risk in particular, as well as for identifying alternative financial methods and instruments. Businesses should invest in increasing analysing and forecasting capacities. They should build their development scenarios, including even the envisage of their possible financial losses from non-operation. They should also employ capable human resources, specialised, educated, that is professional ones, in order to ensure an efficient activity. To this end, I invite you to cooperate more with the banking system, to stand by banks, but also by the Bank of Albania and be open with them.