Spain: Current account surplus narrows in November
January 31, 2014
Spain's current account balance incurred a surplus of EUR 873 million in November, marking a deterioration over both the EUR 1.7 billion surplus recorded in October and the EUR 1.0 billion surplus tallied in the same month of the previous year. In the 12 months up to November, the current account balance recorded a surplus of EUR 7.8 billion, which followed the EUR 7.9 billion surplus observed in the previous month.
The trade balance recorded a EUR 1.2 billion deficit in November, exceeding the EUR 897 million shortfall tallied in the same month of the previous year. Exports declined 1.9% in annual terms, which contrasted the 2.6% increase recorded in October. Meanwhile, imports fell 0.4% in November, contrasting the 1.7% increase recorded in the previous month.
The ongoing rebalancing process is key for the Spanish economy as foreign investment and exports continue to be the country's only source of economic growth. FocusEconomics Consensus Forecast panelists expect the current account balance to record a 2.0% surplus in 2014, which is down 0.1 percentage points over the previous month's estimate. In 2015, the panel sees the current account surplus rising further to 2.4% of GDP.