Spain: Current account surplus widens in June amid strong exports
August 30, 2013
Spain's current account balance incurred a surplus of EUR 2.6 billion in June. The figure contrasted the EUR 1.0 billion shortfall recorded in the same month last year and exceed the EUR 2.4 billion surplus recorded in May. In the 12 months up to June, the current account balance recorded a surplus of EUR 6.8 billion, which contrasted the EUR 3.3 billion surplus observed in the previous month. The print marked the largest reading in more than two decades.
The trade balance recorded a EUR 57 million surplus in June, an improvement over the EUR 2.2 billion shortfall registered in the same month last year. Exports expanded 13.4% in annual terms, which was well above the 9.9% rise recorded in May. Meanwhile, imports rose 1.6% in May, contrasting the 0.8% drop 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 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.