Spain: Current account continues to improve in April
June 28, 2013
In April, the current account balance incurred a deficit of EUR 0.3 billion. The figure was well above the EUR 1.6 billion shortfall recorded in the same month last year but contrasted the EUR 1.2 billion surplus recorded in March. In the 12 months up to April, the current account balance recorded a surplus of EUR 0.2 billion, which contrasted the EUR 1.0 billion deficit observed in the previous month and marks the first positive reading since September 1997.
The trade balance recorded a EUR 0.9 billion deficit in April, an improvement over the EUR 2.9 billion shortfall registered in the same month last year. Exports expanded 20.6% in annual terms, which was well above the 3.4% rise recorded in March and marks the fastest acceleration observed since March 2011. Meanwhile, imports rose 7.7% in April, contrasting the 11.7% drop recorded in the previous month.
The ongoing rebalancing process is key for the Spanish economy, as foreign investment and exports remain the only source of economic growth. FocusEconomics Consensus Forecast panellists expect the current account balance to shift to a 0.8% surplus in 2013, which would represent the first current account surplus since 1986. In 2014, the panel sees the current account surplus rising further to 1.5% of GDP.