Spain: Current account surplus widens
January 31, 2013
In November, the current account balance incurred a surplus of EUR 1.8 billion, which contrasted the EUR 1.9 billion deficit recorded in the same month last year.
The trade balance recorded a EUR 0.8 billion deficit in November, an improvement over the EUR 1.8 billion shortfall registered in the same month last year, as exports outpaced imports. Exports increased 1.2% in annual terms, down from the 10.1% expansion recorded in October. Meanwhile, imports contracted 3.4%, a deterioration over the 0.3% drop recorded in the previous month.
As a result of the monthly figure, the 12-month moving sum of the current account balance continued to improve, stepping up from a EUR 20.7 billion deficit in October to a EUR 17.0 billion deficit in November (equivalent to 1.6% of GDP), the smallest shortfall seen in nearly a decade. The rebalance process bodes well for the economy as foreign investment and exports remain the only source of economic growth.