Spain: Current account posts first surplus so far this year
May 31, 2013
In March, the current account balance incurred a surplus of EUR 1.4 billion. The figure contrasted both the EUR 3.2 billion shortfall recorded in the same month last year as well as the EUR 1.3 billion deficit witnessed in February. In addition, the reading represented the first surplus recorded this year. In the 12 months up to March, the current account balance was zero, which came in above the EUR 4.6 billion deficit observed in the previous month.
The trade balance recorded a EUR 1.0 billion surplus in March, an improvement over the EUR 2.7 billion shortfall registered in the same month last year. Exports expanded 2.7% in annual terms, down from the 4.4% rise recorded in February. Meanwhile, imports fell 13.3% in March, following the 8.2% 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.