Spain's minority government will have to rely upon the support of a heterogenous group of parties to pass legislation, which could hamper policy implementation. High government debt will decline slowly, despite strong nominal economic growth, due to the government's gradual approach to fiscal consolidation over 2024-2027, amid higher interest rates and spending pressures. Spain's competitive, service-driven economy should post growth rates above the eurozone average over 2024-2027, while we expect both private sector and external debt to continue declining, improving Spain's external financial position and reducing external liquidity risks. We affirmed our 'A/A-1' unsolicited sovereign credit ratings on Spain. The outlook is stable. On March 15, 2024, S&P Global Ratings affirmed its 'A/A-1' long- and short-term, foreign- and local-currency, unsolicited
