Spain: Current account surplus shrinks in November
January 31, 2019
Spain’s current account balance recorded a surplus of EUR 1.8 billion in November, a considerable drop from the EUR 3.5 billion surplus recorded in November 2017 but well above the EUR 294 million surplus logged in October. In the 12 months up to November 2018, the current account balance reached a surplus of EUR 10.5 billion, the smallest in four years and below the EUR 12.3 billion recorded in the 12 months up to October.
According to the Bank of Spain, the lower current account surplus compared to the previous year reflected both the primary and secondary income balance swinging to deficit as well as the smaller trade surplus recorded in November 2018—mainly the result of exports expanding less than imports—of EUR 1.8 billion, below the EUR 2.7 billion logged in November 2017.
Spain Current Account Balance Forecast
FocusEconomics Consensus Forecast panelists expect the current account balance to record a surplus of 1.0% of GDP in 2019, which is down 0.1 percentage points from last month’s forecast, and 1.0% of GDP again in 2020.
Author: Javier Colato, Economist