Trade deficit doubles to June and reaches 11,882 … – The País.com (Spain)

Trade deficit doubles to June and reaches 11,882 … – The País.com (Spain)

A ship in the loading vehicle Bouzas, Vigo. / EFE

The economic slowdown in Germany, France and Italy are contributing to slow foreign trade in Spain. The slowdown in the major European economies and the consequences of the conflict with Russia have harmed Spanish exports, which fell 1.2% last June.

Sales of goods abroad strung three months consecutive red numbers-in the second quarter declined by 2% -. “The slowdown in the European economy does not help our exports. If Europe is not growing will be difficult to exporting data from other years,” admitted Monday the Secretary of State for Trade, Jaime García-Legaz, who emphasized that despite the gripazo economical in the heart of Europe, exports have remained stable compared to the decline in other neighboring countries. “It’s the second best June in the history of Spanish commercial sector,” he recalled. In that month sold goods abroad worth 20,601,000. When the financial crisis erupted in 2008, exports amounted to 15.632 million

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Foreign trade of Spain

In cuaquiler case, foreign sales have slowed, which hinders the upward revision of GDP that the government announced that presented this fall. Secretary of State avoided assessing the impact that the worst developments in this sector on growth. Bad data exports are troubling because they were so far the only support pulling the economy. During his appearance before the media, García-Legaz tried to downplay the worsening trade with other countries and stressed that domestic demand is relieving the foreign sector as the engine of the economy.

The Secretary of State argued that part of the decline in exports in June because in the same month of 2013 was very important orders came from the Airbus factory in Getafe (Madrid), which makes comparison difficult.

The improvement in economic activity in Spain-the GDP grew 0.6% in the second quarter of the year is boosting domestic demand, which in turn pulls the cart of imports. The combined effect of the slowdown in exports and the boom in purchases from other countries has boosted the trade deficit. The negative balance between purchases and sales abroad has doubled during the first half of the year to record some red numbers 11,882,000 euros. García-Legaz Spain recalled that historically always logs trade deficit and said that, in his opinion, the data for the first half not prevent year-end surplus was recorded in the current account.

An analysis more detailed analysis of the data reveals that the decline in exports was largely due to a fall in capital goods (4.1% retreat) and concrete machinery industry. On the side of imports, highlights the robust progress of procurement of goods and the automotive industry -90% of domestic production is exported and 70% of car purchases in Spain are imported -.

García-Legaz justified a surge in purchases of machinery for hiding up investment industries to increase production and meet booming domestic demand without neglecting the external. “International Economists said Spain was flying on one engine [external demand] but now with the recovery of domestic consumption fly with two engines,” summarized the Secretary of State.