Spain: Current account surplus reaches eight-month high in August
October 31, 2013
Spain's current account balance incurred a surplus of EUR 2.5 billion in August, marking the highest level since December 2012. The figure represented an improvement over both the EUR 1.6 billion surplus recorded in July and the EUR 0.9 billion surplus tallied in the same month last year. In the 12 months up to August, the current account balance recorded a surplus of EUR 6.4 billion, which was an increase over the EUR 4.7 billion surplus observed in the previous month.
The trade balance recorded a EUR 1.2 billion deficit in August, an improvement over the EUR 2.7 billion shortfall registered in the same month last year. Exports expanded 4.3% in annual terms, which was well above the 0.1% rise recorded in July. Meanwhile, imports fell 3.6% in August, following the 4.7% decline 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 1.2% 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 2.1% of GDP.