Sunday. 27.11.2022
ECONOMY

Spanish exports grew 24.2% so far in 2022 but trade deficit remains

Imports saw a new record high, rising by 40.2% to 261.485 billion euros

containers photo: Pexels
Photo: Pexels.

Spanish exports of goods increased 24.2% in the period from January to July 2022 compared to the same period of the previous year, reaching the all-time high figure of 222.961 billion euros, Customs-declared trade data show.

Imports also saw a new record high, rising by 40.2% to 261.485 billion euros, the Madrid government highlighted in a press release.

"Despite the complex international situation, our foreign trade continues to be dynamic, with export growth that is higher than that of neighbouring economies. This shows the competitiveness and responsiveness of Spanish companies in the volatile international markets", explained the Secretary of State for Trade, Xiana Méndez.

"Imports are growing faster, driven by domestic demand and imports of energy products," she added.

The year-on-year growth of Spanish exports between January and July (24.2%) was higher than that recorded in the EU27 (21.4%) and the eurozone (21.8%). It is also higher than in France (19.5% YoY), the UK (19.1%), Germany (13.2%) and Italy (21.8%).

Outside Europe, Spanish sales of goods also increased to the USA (20.5%), China (14.7%) and Japan (15.8%).

Increase in volume

In volume terms, discounting price increases, the development of exports and imports is also favourable, with exports increasing 6.1% and imports 17.7%. Moreover, higher prices due to the rise in energy prices, remain the main cause of the trade deficit.

The non-energy balance showed a deficit of 7.479 billion euros and the energy deficit reached 31.045 billion euros. As a result, the coverage rate - export/import ratio - stood at 85.3%.

The main positive contributions to the annual rate of change in exports between January and July 2022 came from energy products, chemicals, non-chemical semi-manufactures and food, drinks and tobacco. It is noteworthy that no sector had a significant negative contribution.

Exports to the European Union (62.2% of the total) grew 25.1% YoY in the first seven months of the year. Sales to the eurozone (54.6% of the total) increased 24.4% and those to the rest of the European Union (7.6% of the total) rose 30.8%.

Sales to third countries (non-EU, 37.8% of the total) grew 22.7% in this period, with increases in exports to Latin America (32.9%), North America (29.4%), the Middle East (22.0%), Africa (21.5%) and Asia excluding the Middle East (5.8%).

The regional governments with the highest growth in their exports were the Canary Islands, the Balearic Islands and the Community of Madrid.

July deficit

In July, Spanish exports of goods increased 20.6% over the same month in 2021, to 32.042 billion euros, a record high for a July. Imports increased 37.1% YoY to 38.603 billion euros, also a record high for the month.

As a result, a deficit of 6.561 billion euros was recorded in July 2022. The non-energy balance showed a deficit of 1.409 million euros and the energy deficit reached 5.152 million euros. The coverage rate stood at 83.0%.

Spain's increase in exports in July (20.6%) was larger than that recorded by the EU27 (18.2%) and the eurozone (18.3%). Among the major European economies, exports also grew in Germany (10.8% YoY), France (16.4%), Italy (18.0%) and the UK (36.0%). In the rest of the world, exports from the United States increased 22.2% YoY, from China by 23.9% YoY and from Japan by 19.0% YoY.

In July 2022, exports to the EU accounted for 61.1% of the total and rose 19.8%. Those to the eurozone increased 18.8% and those to the rest of the EU were up 27.7%. Of the main partners, sales to Portugal, France, Germany and Italy increased.

Finally, exports to third countries (non-EU) accounted for 38.9% of the total, up 21.8% YoY, with sales to the UK increasing 1.4%.

Spanish exports grew 24.2% so far in 2022 but trade deficit remains
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