Standards and Poor’s Downgrades Canary Islands

As much as it pains me to write this story, it is still highly relevant because Standards and

As much as it pains me to write this story, it is still highly relevant because Standards and Poor’s rating service has downgraded Spain’s Canary Islands today from A+ to AA-, which only demonstrates Spain’s current financial struggle.

This is a massive blow to the region but the credit rater has also warned that the region could suffer further downgrades as it has been flagged with a “creditwatch negative status”. This basically warns of problematic public finances and high unemployment issues stemming from the year 2008 which has worsened over time. From data received in September of this year, unemployment stands at approximately 25% and is predicted to increase over the upcoming year.

The Spanish government has reacted by imposing budget and spending cuts on its regions in an attempt to balance the deficit but its current situation raises concern for the rest of Europe.

Spain is not the only European country under Standard and Poor’s microscope as a further 14 European Union members (including France and Germany) have also received warnings of possible downgrades if improvement cannot be detected.

The Canary Islands, situated off the west coast of Africa, form part of Spain and are frequented by hundreds of thousands of tourists a year due to its mild all year round climate, turquoise waters and tranquil atmosphere. Its main source of revenue is attributed to the tourist industry so this news is particularly worrying from that viewpoint, however, I’m sure its overall popularity, especially among European visitors will raise the islands’ economy and hopefully in the short-term.

About Sabrina L. Williams

Although I was born in the UK, I moved to the Canary Islands, Spain at a young age and I haven't looked back. The Canaries is a fantastic place to live, I mean you can do all types of outdoor activities practically all year round because of the great weather. Horses are my poison but the islands are also a superb spot for water sports so they do attract a lot of attention from people around the world. Anyway, enough about that. Back in 2011, I made one of the biggest, scariest yet best decisions I'd ever made and set-up my own business in the middle of a recession. I love what I do as no two days are the same, plus Spanish law keeps me on my toes as it is constantly changing (often without warning!) so there is always something new to learn. As I've branched out in the world of Administrative Consultancy, I decided to create a blog to discuss topics of interest to others in my industry and my clients, share tips and experiences, to see what new ideas people have for improving their businesses and the like so I hope you'll find the time to join me on this venture...

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