Spain: Current account balance returns to surplus in May
July 31, 2018
Spain’s current account balance recorded a surplus in May after having logged the largest deficit in over three years in April. The surplus, at EUR 2.4 billion, marked a moderate decline from the EUR 3.1 billion recorded in May 2017 but contrasted the EUR 1.5 billion deficit observed in April. In the 12 months up to May 2018, the current account balance reached a surplus of EUR 17.8 billion, the smallest since July 2016 and below the EUR 18.5 billion surplus recorded in the 12 months up to April.
According to the Bank of Spain, the lower current account surplus compared to a year ago reflected the smaller trade surplus recorded in May 2018—mainly the result of higher imports—of EUR 3.3 billion, well below the EUR 4.2 billion logged in May 2017.
Spain Current Account Balance Forecast
FocusEconomics Consensus Forecast panelists expect the current account balance to record a surplus of 1.6% of GDP in 2018, which is unchanged from last month’s forecast. For 2019, the panel sees the current account surplus remaining steady at 1.6% of GDP.
Author: Javier Colato, Economist