Spain Posts Smallest September Trade Deficit in 19 Years


Spain's trade deficit declined 13.2 percent to €2.23 billion in September 2016 from €2.57 billion a year earlier. It was the smallest trade gap for a September month since 1997, as exports were almost unchanged from the previous year while imports dropped 1.4 percent. In the first nine months of the year, the trade deficit fell 29 percent to €13.23 billion, driven by a 1.2 percent increase in exports, which hit a new record high for that period.

Total exports were almost unchanged at €21.43 billion, a fresh record high for a September month. Main contributions to export growth came from: Food, beverages and tobacco (contribution of +1.1 points); manufactured consumer goods (+0.7 points), energy products (+0.4 points) and raw materials (+0.4 points). By contrast, negative contributions came from: other goods (contribution of -1.3 points); chemical products (-0.5 points), capital goods (-0.5 points) and the automotive sector (-0.4 points).

Exports to the EU dropped 0.6 percent year-on-year; of which those for the euro zone decreased by 0.8 percent and those to the rest of the European Union went down 0.2 percent. Among major trading partners, exports fell to France (-7.5 percent) and the UK (-1.5 percent) but rose to Italy (+8.7 percent) and Germany (+1.1 percent). Exports to countries outside the European Union grew 1.5 percent from the same month last year. By countries, sales mainly rose to Canada (+24.5 percent), Egypt (+46.7 percent) and Morocco (+8.1 percent); but fell to the United States (-5.9 percent), Argentina (-45.8 percent), Venezuela (-50.4 percent) and Algeria (-10.7 percent).

Total imports decreased by 1.4 percent from the previous year to €23.66 billion.

The coverage rate stood at 90.6 percent, 1.3 percentage points higher than in September 2015 (89.3 percent), the highest value recorded for this month since the beginning of the series in 1962.

The non-energy balance showed a deficit of €1.02 billion (€0.70 billion gap in September 2015) and the energy deficit decreased 35.2 percent from the previous year.

Considering the first nine months of the year, the Spanish trade deficit fell 29 percent to €13.23 billion, driven by a 1.2 percent increase in exports to €188.49 billion, which hit a new record high for that period; while imports fell 1.6 percent to €201.71 billion.

Spain Posts Smallest September Trade Deficit in 19 Years


Mineco | Joana Ferreira | joana.ferreira@tradingeconomics.com
11/21/2016 11:30:17 AM