Spain: Current account surplus continues to improve in July
September 30, 2013
Spain's current account balance incurred a surplus of EUR 1.6 billion in July. The figure marks an improvement over the EUR 0.8 billion surplus recorded in the same month last year, but fell short of the EUR 2.1 billion surplus recorded in June. In the 12 months up to July, the current account balance recorded a surplus of EUR 4.7 billion, which was an increase over the EUR 3.9 billion surplus observed in the previous month.
The trade balance recorded a EUR 16 million deficit in July, an improvement over the EUR 1.2 billion shortfall registered in the same month last year. Exports expanded a mild 0.1% in annual terms, which was well below the 12.1% rise recorded in June. Meanwhile, imports fell 4.7% in July, contrasting the 0.4% rise 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 panelists expect the current account balance to shift to a 1.0% 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 1.9% of GDP.