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Foreign investors screeching to a stop

Just when the first major signs of a recovery arrived, foreign investment in Spain is now in the red. This is not a situation to take lightly. So why did investments fall during the first two months of the year?

Shrinking foreign investment happened because interest rates are dropping across Spain as an improving economy reduces risk. But we still need foreign investment -- around 6 billion euros of it -- to stay flat with 2013 numbers. The situation is not dire, but if the downward trend continues then it could be. At this point, the numbers suggest that we might not meet analyst forecasts for 2014.

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