Spain's trade deficit narrowed to EUR 1.86 billion in November 2019 from EUR 2.57 billion in the same month last year. This was the smallest trade gap since June, as imports declined 3.3% to EUR 26.93 billion, amid lower acquisitions of capital goods (-2.4%); chemicals (-2.8%); vehicles (-2.5 percent) and energy products (-13.3%). Among major trade partners, imports from the Euro Area shrank 1%, owing to declines from Germany (-3.9%), France (-2%) and Italy (-8.5%). Purchases also fell from China (-5.8%), Turkey (-2.4%), Switzerland (-26.8%), but were higher from the UK (3.1%) and the US (10%). Exports dropped 0.9% to EUR 25.06 billion, as shipments sank for chemicals (-7.2%); non-chemical semi-manufactured goods (-4.3%); energy products (-26.1%) and raw materials (-4.6%). Sales to the Euro Area grew 1.5%, as increases from France (0.9%), Germany (0.7%) and Belgium (29.6%) outpaced decreases from Italy (-4.1%) and Portugal (-3%). Exports fell sharply to Switzerland (-30%). Balance of Trade in Spain averaged -1797817.24 EUR Thousand from 1962 until 2019, reaching an all time high of 634935 EUR Thousand in November of 1988 and a record low of -9834766 EUR Thousand in December of 2007. source: Ministerio de Industria, Comercio y Turismo
Balance of Trade in Spain is expected to be -1500000.00 EUR Thousand by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Balance of Trade in Spain to stand at -1800000.00 in 12 months time. In the long-term, the Spain Balance of Trade is projected to trend around -1900000.00 EUR Thousand in 2020, according to our econometric models.
Spain Balance of Trade
Spain runs systemic trade deficits due to high imports of fuel and high added value goods. In 2017, Spain's trade deficit rose 31.9 percent from the previous year to EUR 25 billion, mainly due to a surge in domestic demand and an increase in energy prices. Within the Autonomous Communities, the biggest exporters were Catalonia (26 percent of total exports), Andalusia, Madrid and Valencia (11 percent each) and the Basque Country (9 percent); while the largest importers were Catalonia (28 percent of total imports), Madrid (20 percent) Andalusia (10 percent) and Valencia (9 percent). The trade surplus with the EU widened to EUR 16 billion from EUR 13 billion in 2016, boosted by an increase in both surpluses with the Eurozone (EUR 9 billion vs EUR 7 billion in 2016) and with the non-euro area countries of the EU (EUR 7 billion vs EUR 6 billion). With regard to non-EU countries, the trade deficit increased to EUR 41 billion from EUR 32 billion in the previous year, as the deficit with Asia rose to EUR 35 billion from EUR 29 billion and that with Africa went up to EUR 6 billion from EUR 4 billion. Also, the gap with Latin America grew to EUR 2 billion from EUR 60 million in 2016, while that with North America was almost unchanged at EUR 1 billion.