Exports up by 1.3% and trade deficit to August down by 31.6%

Meanwhile imports shrank by 1.6% to 178.05 billion. However, in volume terms imports increased by 3.1%, since prices fell by 4.5%.

As a result, from January to August the trade deficit amounted to 11 billion euros, 31.6% less than the figure for the same period of 2015, and the second best balance for the period January-August since 1997, only bettered in 2013. The coverage rate stood at 93.8%, 2.7 percentage points above the figure for January-August 2015 (91.1%), and the second best result ever, only bettered by the cumulative figure to August 2013. The non-energy balance posted a deficit of 156 million euros (versus a surplus of 2.74 billion euros in January-August 2015) while the energy balance fell by 42.4% on the back of a substantial drop in energy prices.

If we compare these results with those of other countries, cumulative export growth for Spain (1.3%) contrasts with the negative growth posted by the Eurozone as a whole (-0.4%) and by the European Union (-1.1%). Exports also fell from France (-1.4% year-on-year), Italy (-0.1%) and the United Kingdom (-4.8%), while exports from Germany grew by 0.8%, albeit less strongly than those from Spain. Outside the EU, sales abroad from the USA (-5.6%), China (-6.3%) and Japan (-9.5%) also shrank.

Economic sectors

Containers for exportIn the first eight months of 2016, exports in the main categories performed positively. Capital goods (20.2% of the total) grew by 2.8% year-on-year, the automotive sector (17.9% of the total), continued to grow strongly, by 10.1% year-on-year, and sales abroad by the food, drink and tobacco sector (17.1% of the total) also increased, by 6.1%. Meanwhile, sales abroad by the sectors of energy products (-6% year-on-year, penalised by low energy prices), non-chemical semi-manufactures (-3.2%), raw materials (-9.5%) and other goods (-50.1%) all decreased.

Consequently, the main positive contributions from exports came from the automotive sector (a contribution of 1.7 percentage points to the increase in total exports), food, drink and tobacco (1 point), consumer manufactures (0.6 points) and capital goods (0.6 points). The only negative contributions came from the sectors of other goods (-1.7 points), non-chemical semi-manufactures (-0.3 points), energy products (-0.3 points), and raw materials (-0.2 points).

By subsector, the main positive contributions were from the automobile and motorcycle sectors (1.5 points, mainly due to stronger sales to Germany, Italy, Belgium and the UK), road haulage equipment (0.6 points, to the UK, Italy, the Netherlands and Belgium), clothing (0.4 points, to Italy, the UK, the USA and Ireland), and meat products (0.3 points, mainly to China).

Conversely, the subsectors that most dragged exports were iron and steel (-0.4 points, mainly due to lower sales to Algeria, Italy, the USA and Portugal), minerals (-0.3 points, mainly to Bulgaria), aircraft (-0.2 points, particularly to Saudi Arabia, followed some way behind to Australia, and then to Libya and Germany), and gas (-0.2 points, to Japan, Kuwait, Egypt and Argentina).

With regard to imports, the consolidation of the recovery of the Spanish economy is driving growth in most sectors. Imports of capital goods (21.6% of the total) were up by 8.9% year-on-year, imports in the automotive sector (14% of the total) grew by 5.7%, and purchases of consumer manufactures and of food, drink and tobacco grew by 6.7% and 5.5%, respectively.

The main positive contributions to imports in the period January-August 2016 came from the sectors of capital goods (a contribution of 1.7 points), consumer manufactures (0.8 points), the automotive sector (0.7 points) and food, drink and tobacco (0.6 points). The only negative contributions to this period were from the sectors of energy products (-4.7 points), raw materials (-0.5 points), chemical products (-0.4 points), and non-chemical semi-manufactures (-0.2 points).

By subsector, the main positive contributions were from the subsectors of automobiles and motorcycles (0.8 points, mainly due to higher purchases from Germany, Italy, Japan and Belgium), clothing (0.5 points, mostly from Morocco, Bangladesh, Turkey and Cambodia), aircraft (0.4 points, from the USA, France and Canada), and general purpose machinery (0.3 points, from China, France, Italy and the Netherlands).

Conversely, the subsectors in which imports decreased the most were oil and oil derivates (-3.6 points, mainly due to lower purchases from Angola, the UK, Nigeria and Mexico), gas (-0.8 points, largely as a result of lower purchases from Algeria and, to a lesser extent, from Qatar, Trinidad and Tobago, and Norway), and minerals (-0.5 points, from the USA, Chile, Germany and the UK).

Geographic areas

Pool MoncloaExports to the European Union (66.3% of the total) grew by 4.5% in January-August 2016 compared with the same period of the previous year. In the case of sales to the Eurozone (51.6% of the total), the increase stood at 4.2%, while sales to the rest of the European Union (14.7% of the total) increased by 5.6%. Conversely, the unfavourable trade cycle in emerging countries caused exports to third countries (33.7% of the total) to fall by 4.4% in this period, with lower exports to North America (-0.8%), Latin America (-12%), the Middle East (-5.4%), Africa (-1.2%) and Oceania (-24.3%).

Only exports to Asia excluding the Middle East increased (up 2.1%). Despite the overall drop in sales to third country markets, special note should be made of sales to such high potential markets as Morocco (up 15.8%), China (up 12%), Canada (up 7.6%) and Chile (up 3.7%).

The countries with the greatest positive contribution to the year-on-year rate of change in Spanish exports in the period January-August 2016 (1.3%) were Germany (0.8 points, due to stronger sales of automobiles and motorcycles and, to a much lesser extent, of fruit, vegetables and pulses, and medicines), the UK (0.7 points, due to the increase in exports of automobiles and motorcycles, aircraft and road haulage equipment), Italy (0.7 points, mainly due to the increase in exports of automobiles and motorcycles, and, to a lesser extent, road haulage equipment, and other chemical products) and Belgium (0.5 points, as a result of an increase in exports of automobiles and motorcycles and, some way behind, oil and oil derivates, and road haulage equipment).

Conversely, the greatest negative contributions corresponded to Saudi Arabia (-0.4 points, due to lower aircraft sales and, to a much lesser extent, of oil and oil derivates, and general purpose machinery), France (-0.3 points, due to a drop in exports of automobiles and motorcycles, and oil and oil derivates), Gibraltar (-0.3 points, almost entirely due to the drop in exports of oil and oil derivates), and Brazil (-0.3 points, mainly as a result of lower exports of automobiles and motorcycles, medicines, and electrical appliances).

By autonomous region, the regions that posted the greatest year-on-year rate of change in exports in the period January-August 2016 were Castile and León (12.3% year-on-year), Castile-La Mancha (9.9%) and Cantabria (6.5%). Conversely, the greatest year-on-year decreases were posted by the Canary Islands (-19.4% year-on-year), the Balearic Islands (-11.9%), and Asturias (-10.3%).

In terms of contributions to the year-on-year rate of change in total exports, the greatest positive contributions came from Castile and León (0.7 percentage points), whose exports accounted for 6.4% of the total and grew by 12.3% year-on-year, and Catalonia (0.5 percentage points), whose sales abroad represented 25.6% of the total, and grew by 2.1% year-on-year. The regions with the greatest negative contributions were the Region of Madrid with -0.4 points (10.9% of total exports, down by 3.8%), and the Canary Islands with -0.2 points (0.8% of the total, down by 19.4%).

Exports from the Region of Valencia (11.5% of the total) increased by 4.7%, those from Andalusia (10.1% of the total) fell by 0.9%, exports from the Basque Country (8.5% of the total) shrank by 0.4%, while those from Galicia (7.7% of the total) increased by 5.4%.

August 2016

EFEIn the month of August, Spanish exports of goods grew by 8.9% in year-on-year terms to 17.65 billion euros, the highest ever figure for this month since records began. By volume, the increase was greater (10.1% year-on-year) due to the fact that prices measured by Unit Value Indices shrank by 1.1%. In seasonally-adjusted terms, the increase was 6.3%.

Imports in August 2016 grew by 4.2% in year-on-year terms to 20.21 billion euros. However, by volume, imports grew by 7.2%, since import prices fell by 2.9%.

Consequently, in August 2016 the trade balance posted a deficit of 2.56 billion euros, 19.9% less than in the same month of 2015 (a deficit of 3.19 billion euros), and the second best balance for a month of August since 1998, only bettered in 2013. The coverage rate stood at 87.3%, 3.8 percentage points better than in August 2015 (83.5%), and the second highest coverage rate recorded since records began in 1962, only bettered in 2013. The non-energy balance posted a deficit of 1.17 billion euros (versus a deficit of 755.1 million euros in August 2015), while the energy deficit shrank by 43%.

Export growth in Spain (up 8.9%) is stronger than the growth posted in the Eurozone (up 7.4%) and in the European Union (up 5.1%). Germany (up 9.8% year-on-year), Italy (up 11.4%) and France (up 4.7%) also posted export growth while exports from the UK declined (-0.9%). Outside the EU, US exports grew (up 0.1% year-on-year). Meanwhile, exports from China (-3.2%) and Japan (-9.6%) fell.

Economic sectors

In the month of August, the main contributions to export growth came from the sectors of food, drink and tobacco (a contribution of 2.7 points), non-chemical semi-manufactures (2.2 points), chemical products (2.1 points) and the automotive sector (1.8 points). Conversely, the only sectors which contributed negatively were those of other goods (a contribution of -1.9 points), with a drop of 43.2%, and capital goods (a contribution of -0.9 points), with a drop of 3.9%.

By subsector, the main positive contributions came from automobiles and motorcycles (2.1 points, mainly due to stronger sales to Germany, the UK, Italy and Turkey), oil and oil derivates (1.3 points, to Belgium, Italy and, some way behind, to Gibraltar and Morocco), medicines (1.1 points, especially to Switzerland, Italy, Germany and the USA), and iron and steel (0.9 points, mainly to Germany and France, and less so to Belgium and Italy). Conversely, the subsectors that most dragged exports were special purpose machinery (-0.8 points, mainly due to lower sales to Canada, Egypt, Brazil and Turkmenistan), engines (-0.8 points, almost entirely to the UK), coal and electricity (-0.3 points, to Morocco and to a lesser extent to Portugal), and gas (-0.3 points, due to sales to Pakistan, Brazil, Argentina and the Netherlands).

Geographic areas

EFEIn August 2016, exports to the European Union accounted for 63.3% of the total, an increase on the 61.6% posted in August 2015. This percentage growth was driven by the Eurozone (49.3% versus 47% in August 2015), since for the rest of the European Union the share fell slightly (14.1% in August 2016 versus 14.6% in the same month of the previous year).

Export growth to the European Union was 12% year-on-year, to the Eurozone, 14.2%, and to the rest of the European Union, just 4.8%. Of our main trade partners, the main export growth came Italy (29.4%), Germany (19.4%), Portugal (9.9%), France (2.3%) and the UK (1.2%).

Exports to non-European Union countries accounted for 36.7% of the total (38.4% in August 2015) and grew by 3.9% on the same month the previous year. By region, there was growth in all areas except for Latin America (-2.7%), due to lower export figures to Brazil (-22%), Chile (-8.3%) and Argentina (-24.9%), and Oceania (-10.7%), as a result of lower figures for Australia (-14.5%). Exports actually grew to North America (up 4.3%), Asia excluding the Middle East (up 15.1%), the Middle East (up 2.4%) and Africa (up 9.4%). By country, we would highlight export growth to Canada (up 36.3%), Mexico (up 16.6%), China (up 24.3%), Japan (up 11.8%), South Korea (up 35.5%), the Philippines (up 35.8%), India (up 21.1%), the United Arab Emirates (up 8.9%), Egypt (up 21.7%), Morocco (up 12.2%) and South Africa (up 59.6%), and negatively to Saudi Arabia (-12.3%) and the above named countries.

The countries making the greatest positive contribution to the year-on-year rate of change in Spanish exports in August 2016 (8.9%) were Germany (1.9 points, due to stronger sales of automobiles and motorcycles, other goods and electrical appliances), Italy (1.8 points, largely due to the increase in exports of oil and oil derivates, medicines, and other chemical products), Portugal (0.8 points, due to the increase in exports of other capital goods, fruit, vegetables and pulses, and oils and fats) and Belgium (0.7 points, as a result of higher exports of oil and oil derivates, general purpose machinery, and automobiles and motorcycles).

Conversely, the greatest negative contributions corresponded to Brazil (-0.4 points, due to lower sales of oil and oil derivates, gas and, to a lesser extent, medicines), Saudi Arabia (-0.2 points, largely due to the drop in exports of general purpose machinery and road haulage equipment), Taiwan (-0.2 points, due to the drop in exports of oil and oil derivates, and engines), and Argentina (-0.1 points, due to lower exports of gas and automotive components).

Spain's trade surplus with the European Union stood at 772.4 million euros in August 2016 (versus a surplus of 217.1 million euros in August 2015). Against the Eurozone, the trade balance showed a surplus of 334.1 million euros (versus a surplus of 11.3 million euros in the same month of the previous year). Meanwhile, the trade deficit with non-EU countries fell by 2.3% versus August 2015, to 3.33 billion euros (compared with a deficit of 3.41 billion euros in August 2015).