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Exports reach a record in March and their pull reduces the trade deficit by 57%

Date: March 2, 2024 Time: 00:38:59

Exports remain one of the main engines of the Spanish economy. The push from the foreign sector allowed GDP to advance by 0.5% between January and March in relation to the previous quarter and by 3.8% with respect to the same period of the previous year. The data published this Thursday by the Ministry of Industry, Commerce and Tourism confirm this. Sales of Spanish merchandise abroad shot up 14.6% in the first quarter in year-on-year terms and reached 102,683.9 million euros, a new all-time high for that period.

At the same time, the greatest boost in the economy translated into a 4% increase in imports to 109,262.2 million, also setting a record. The combination of both variables reduced the trade deficit (the difference between what we buy and sell abroad) by 57% compared to the same quarter a year ago to 6,578.3 million euros. In this period, Spain has benefited from more limited inflation than its main trading partners (especially the Eurozone and the European Union), which has allowed it to gain competitiveness and market share.

In a context in which energy has been moderating its price after the crisis that began in the summer of 2021 and worsened after the outbreak of the war in Ukraine, the energy deficit was reduced to 8,217.6 million in the first three months of the year, compared to 11,052.3 million a year earlier. At the same time, the non-energy balance showed a surplus of 1,639.3 million, compared to the deficit of 4,364.1 million a year earlier.

The coverage rate is 94% good and prospects for the year

In volume, Spanish exports increased by 3.5% year-on-year, while their approximate prices by unit value indices rose by 10.7%. In these same terms, imports fell by 3.2% year-on-year, since their prices rose by 7.5%. This assumes that the named coverage rate is back to the previous year.

The strength of the foreign sector is reflected in the forecasts that the Funcas Panel has released this Thursday. Analysts expect this sector to contribute seven tenths of a point to this year’s growth, four more than in the calculations published last March. This improvement responds precisely to an upward revision of exports. Meanwhile, they estimate that national demand will contribute one percentage point, two tenths less than in the previous forecast, due to the lower boost from private consumption and investment in machinery and capital goods. The Funcas Panel calculates that in the remainder of the year growth will be less than in the first quarter, placing it around 0.2%-0.3%.

Exports to Germany, Italy and France soar

By sectors, capital goods, with an interannual increase of 23.3%; the automobile sector (32%); chemical products (14.2%) and food, beverages and tobacco (13.9%) were the ones that contributed to a large extent to the takeoff of exports. Most of these products went to countries of the European Union (almost 64%), where sales to destinations such as Germany (18.9%), Italy (17.4%) and France (15.2%) ) grew strongly in this environment of lower inflation in our country.

Meanwhile, Spain imported capital goods (they increased by 15.3%), chemical products (they fell by 7.4%), energy products (they fell by 10.7%) and food, beverages and tobacco, which shot up 18.2%. Specifically, those from the EU rose 10% and those from non-EU countries fell 1.2%. Germany and China were the main suppliers of goods to the national territory.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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