Spain: Current account deficit narrows in February
April 30, 2013
In February, the current account balance incurred a deficit of EUR 1.3 billion, which came in well below the EUR 5.9 billion shortfall recorded in the same month last year. In addition, the reading undershot the EUR 2.6 billion deficit witnessed in January. On a positive note, Spain registered net capital inflows of EUR 10.8 billion in February, marking the sixth month in a row of positive figures.
The trade balance recorded a EUR 0.6 billion deficit in February, an improvement over the EUR 3.2 billion shortfall registered in the same month last year. Exports expanded 4.4% in annual terms, down from the 10.1% rise recorded in January. Meanwhile, imports fell 8.2%, contrasting the 6.8% increase recorded in the previous month.
The ongoing rebalancing process is key for the Spanish economy, as foreign investment and exports remain the only source of economic growth. FocusEconomics Consensus Forecast panellists expect a balanced current account in 2013. In 2014, the panel sees the current account balance rising to a 1.5% of GDP surplus.