Spain: Current account records first surplus in over a decade
September 28, 2012
In July, the current account balance incurred a surplus of EUR 500 million, which contrasted the EUR 880 million deficit recorded in the same month last year and marked, in fact, the first monthly surplus seen in over a decade. The trade balance reached a EUR 1.3 billion deficit in July, a small deterioration over the EUR 1.1 billion deficit recorded in the same month last year, as imports outpaced exports. Exports increased 3.7% in annual terms, slightly down from the 4.3% expansion recorded in June. Meanwhile, imports grew 4.4%, rebounding from the 1.4% drop recorded in the previous month. As a result of the monthly figure, the 12-month moving sum of the current account balance improved, stepping up from a EUR 30.8 billion deficit in June to a EUR 29.4 billion deficit in July (equivalent to 2.7% of GDP), the smallest shortfall observed in over eight years.