Spain: Current account balance swings to sizeable deficit in April
June 30, 2020
Spain’s current account balance recorded a deficit of EUR 1.5 billion in April, contrasting the EUR 2.9 billion surplus recorded in April 2019 and following the EUR 0.3 billion deficit logged in March. In the 12 months up to April 2020, the current account balance reached a surplus of EUR 21.2 billion, well below the EUR 25.6 billion surplus in the 12 months up to March.
According to the Bank of Spain, the swing to a current account deficit from the surplus a year ago reflected the trade balance registering a deficit of EUR 0.5 billion in April, in large part due to tourism receipts collapsing to zero amid the coronavirus-induced shutdown of foreign travel, contrasting the EUR 4.5 billion surplus logged in April 2019.
Author: Javier Colato, Economist