Spain: Annual current deficit continues to narrow
November 30, 2012
In September, the current account balance incurred a deficit of EUR 370 million, which was only a fraction of the EUR 3.7 billion deficit recorded in the same month last year. The trade balance recorded a EUR 2.7 billion deficit in September, an improvement over the EUR 4.6 billion shortfall registered in the same month last year, as exports outpaced imports. Exports increased 2.0% in annual terms, down from the 7.4% expansion recorded in August. Meanwhile, imports contracted 6.5%, a deterioration over the 2.6% drop recorded in the previous month. As a result of the monthly figure, the 12-month moving sum of the current account balance continued to improve, stepping up from a EUR 27.1 billion deficit in August to a EUR 23.7 billion deficit in September (equivalent to 2.2% of GDP), the smallest shortfall seen in nearly a decade.