The Spanish trade deficit falls by 56% until September

The Spanish trade deficit falls by 56% until September

The Spanish trade deficit stood at 11,105 million euros in the first nine months of the year, which represents a decrease of 56.4% compared to the data for the same period of the previous year, according to data from the Ministry of Industry, Commerce and Tourism .

This result is due to the 12.6% decline in exports, to 188,401 million euros, which fell less than imports, which registered a 17.2% drop, to 199,507 million euros.

The coverage rate (ratio between exports and imports) stood at 94.4%, well above the 89.4% registered between January and September 2019.

The non-energy balance showed a surplus of 116 million euros, compared to the deficit of 7,910.2 million euros in the same period of 2019, while the energy deficit was reduced by 36%, to 11,221.2 million euros ( deficit of 17,535.5 million in the same period of the previous year with provisional data).

The Secretary of State for Commerce, Xiana Méndez, has highlighted that the data shows that Spanish exports continue their “recovery path” after the initial impact that Covid-19 originated in trade flows. “This evolution allows us to continue with the intense reduction of the trade deficit and the indicators show that exports will contribute to the recovery of the Spanish economy”, he stressed.

Regarding the sectors, the ones that increased exports the most were food, beverages and tobacco (their exports represent 20% of the total and rose 5.8% year-on-year), while the main negative contributions came from goods equipment (19.5% of the total and 16.3% less), chemical products (16% of the total and 4.5% less) and the automobile sector (14% of the total and 19.3% less).

Between January and September, Spanish exports decreased in line with other European economies, being somewhat lower in the euro zone (-11.2%) and the EU-27 (-10.5%). Exports from France (-19.1%), the United Kingdom (-16.2%), Italy (-11.6%) and Germany (-11.7%) also fell. Outside of Europe, sales in the US (-15.4%), China (-0.8%) and Japan (-14.6%) also decreased.

Exports to the European Union, which account for 60.5% of total Spanish exports, fell by 10.3% in the first nine months of the year.

In turn, sales to third destinations (39.5% of the total) fell by 16% in this period, with decreases in exports to Latin America (-27%), Africa (-19%), the Middle East ( -13.5%), North America (-12.7%), Asia excluding the Middle East (-6.7%) and Oceania (-6.6%).

By autonomous community, exports grew in Extremadura (+ 4.1%) and the greatest decreases occurred in the Canary Islands (-32.5%), Asturias (-20.3%) and the Basque Country (-19.7%) .