Spain: Export growth continues to ease
March 29, 2012
In January, exports rose 3.9% over the same month last year to EUR 16.6 billion. The figure was down from the 6.6% increase observed in December. The reading marks the second consecutive month of decelerating exports, as the debt crisis in the Euro area is finally taking its toll on shipments abroad. Export growth is pivotal for supporting the Spanish economic recovery, as domestic demand remains depressed amid a severe fiscal consolidation process and rampant unemployment. Meanwhile, imports contracted 3.1% in annual terms to EUR 20.2 billion, which contrasted the 1.1% expansion recorded in December. As a result, the trade deficit shrank from EUR 4.5 billion in December to EUR 3.7 billion in January. The government anticipates exports to expand 3.4% this year.