Spain: Rebalancing process continues
October 31, 2012
In August, the current account balance incurred a surplus of EUR 1.2 billion, which contrasted the EUR 1.1 billion deficit recorded in the same month last year. The figure marked the second consecutive surplus, after the current account balance recorded monthly deficits for over a decade. The trade balance recorded a EUR 2.7 billion deficit in August, an improvement over the EUR 4.4 billion deficit registered in the same month last year, as exports outpaced imports. Exports increased 7.4% in annual terms, up from the 3.7% expansion recorded in July. Meanwhile, imports contracted 2.6%, which contrasted the 4.4% expansion 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 29.4 billion deficit in July to a EUR 27.1 billion deficit in August (equivalent to 2.5% of GDP), the smallest shortfall seen in over nine years.