The successive decisions on tariffs announced by the U.S. administration have resulted in a volatile environment in financial markets and heightened economic uncertainty. Both consequences are not independent, as the instability in financial asset prices will have a negative economic impact.
Volatility in financial markets is in itself a risk when investing, increasing the probability that returns will deviate from expectations. Confidence is key when making any decision, especially at the financial level.
Volatility is traded in the market. It can be bought and sold. The levels reached have been the highest since the financial crisis and the health crisis. However, the current situation is very different, especially in Spain.
The better starting position of the Spanish economy has been reflected, for example, in the fact that it is one of the few countries for which the IMF has raised its growth forecast, after lowering it by half a point globally. Behind this is the fact that the leverage level of Spanish households and companies is much lower than in previous crises and is below the European average. Also noteworthy is the strength of our country’s banks, a solvent sector with high liquidity.
Reinforcing the certainty of the banking sector is the best way to enhance its contribution to the economy as a whole, even more so in an environment as complex as the current one. The improvement of its results and profitability is a benefit for everyone, because a solid financial sector is essential to drive economic growth and competitiveness, as well as to support companies and families in their plans and projects, and help society as a whole successfully overcome the challenges it faces.
José Luis Martínez Campuzano, spokesperson for the Spanish Banking Association
