Spain: Current account records largest monthly surplus on record
February 28, 2013
In December, the current account balance incurred a surplus of EUR 4.9 billion, which contrasted the EUR 3.9 billion deficit recorded in the same month the previous year. The reading exceed November's EUR 1.8 billion surplus and marked, in fact, the largest monthly surplus on record.
The trade balance recorded a EUR 0.9 billion deficit in December, an improvement over the EUR 3.9 billion shortfall registered in the same month the previous year, as exports outpaced imports. Exports jumped 9.2% in annual terms, up from the 1.2% expansion recorded in November. Meanwhile, imports contracted 6.4%, a deterioration over the 3.4% drop recorded in the previous month.
In the full year 2012, the current account balance recorded a deficit of EUR 8.3 billion (0.8% of GDP). The figure represents a notable improvement over the EUR 37.5 billion deficit (3.5% of GDP) recorded in 2011 and marks, in fact, the smallest shortfall seen in nearly a decade. The 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 the current account deficit to reach 0.2% of GDP in 2013. In 2014, the panel sees the current account balance reverting into a 0.5% of GDP surplus.