Spanish Trade Gap Narrows 60% YoY in July


Spain's trade deficit dropped 60 percent to €0.56 billion in July 2016 from €1.40 billion a year earlier, as exports fell 9.1 percent while imports declined at a faster 12 percent. It was the smallest trade gap for a July month since 1985. In the first seven of the year, the trade deficit fell 34.5 percent to €8.4 billion, driven by a 0.5 percent increase in exports, which hit a new record high for that period.

Total exports declined by 9.1 percent year-on-year to €21.37 billion. Contributions to export contraction came mainly from the automotive sector (contribution of -1.7 points), other goods (-1.5 points), chemicals products (-1.3 points) and non-chemical semi-manufactured goods (-1.3 points). The less negative contributions came from consumer durables (contribution of -0.1 points) and food, beverages and tobacco (-0.4 points) sectors.

Exports to the EU dropped 6.7 percent year-on-year; of which those for the euro zone decreased by 7.5 percent and those to the rest of the European Union went down 3.8 percent. Among trading partners, exports fell to Germany (-9.8 percent) and France (-18.2 percent) but rose to the UK (+10.2 percent) and to Italy (+5.7 percent). Exports to countries outside the European Union fell 13.4 percent from the same month last year. By countries, sales dropped to the United States (-22.9 percent), Argentina (-47.8 percent), Chile (-19.4 percent), Mexico (-17 percent), Brazil (-13.6 percent), China (-10.2 percent), Saudi Arabia (-30.0 percent), UAE (-18.5 percent), Algeria (-12.4 percent) and Egypt (-38.7 percent). Increases were reported for: Morocco (+5.8 percent), Australia (+16.2 percent) and Canada (+54.5 percent).

Total imports decreased by 12 percent to €21.92 billion.

The coverage rate stood at 97.5 percent, 3.1 percentage points higher than in July 2015 (94.4 percent), hitting its greatest value for a July from the beginning of the series in 1962. 

The non-energy balance showed a surplus of €914.3 million (€933.1 million surplus in July 2015) and the energy deficit decreased 36.8 percent from the previous year.

Considering the first seven months of the year, the Spanish trade deficit fell 34.5 percent to €8.4 billion, driven by a 0.5 percent increase in exports to €149.4 billion, which hit a new record high for that period; while imports fell 2.3 percent to €157.8 billion.

Spanish Trade Gap Narrows 60% YoY in July


Mineco | Joana Ferreira | joana.ferreira@tradingeconomics.com
9/22/2016 8:43:45 AM