Tuesday May 21 2019
Spain Posts Largest March Deficit in 7 Years
Ministerio de Industria, Comercio y Turismo | Stefanie Moya | stefanie.moya@tradingeconomics.com

The Spanish trade deficit widened sharply to EUR 2.35 billion in March 2019 from EUR 0.83 billion in the corresponding month of the previous year. It was the largest trade gap for a March month since 2012, as imports increased 5.2 percent year-on-year while exports dropped 0.5 percent.

Imports went up 5.2 percent from a year earlier to EUR 27.82 billion in March, boosted by higher purchases of capital goods (1.5 percent); chemicals (12.7 percent); energy products (13.4 percent); non-chemical semimanufactures (4.0 percent); food, beverages & tobacco (5.7 percent); manufactured goods (3.2 percent); and durable consumer goods (4.9 percent). Meanwhile, pruchases decreased for vehicles (-0.4 percent); and raw materials (-0.2 percent).

Among major trading partners, purchases advanced from China (7.6 percent), the US (39.8 percent) and the UK (16.5 percent) but went down from the Euro Area (-0.8 percent), of which France (-4.9 percent), Italy (-1.6 percent) and Portugal (-3.9 percent).

Exports declined 0.5 percent to EUR 25.47 billion, mostly due to lower sales of the automotive sector (-15 percent); and non-chemicals semi-manufactures (-6.3 percent). On the other hand, sales advanced for capital goods (0.1 percent); food, beverages & tobacco (3.6 percent); chemicals (7.2 percent); energy products (15.6 percent); raw materials (5.3 percent); manufactured goods (1.3 percent); durable consumer goods (1.5 percent); and other products (8.2 percent).

Among major trading partners, sales fell to the Euro Area (-3.8 percent), namely to Germany (-7.1 percent), France (-6.9 percent) and Italy (-0.1 percent), while rose to Portugal (2.2 percent). Shipments also increased to the UK (5.6 percent), the US (11.7 percent) and China (14.3 percent).

Considering the first quarter of the year, the country's trade gap increased to EUR 9.46 billion from EUR 6.93 billion in the same period of 2018, as imports rose 3.2 percent to EUR 80.48 billion and exports were almost unchanged at EUR 71.01 billion.




Tuesday May 14 2019
Spain Annual Inflation Rate Confirmed at 1.5% in April
INE | Stefanie Moya | stefanie.moya@tradingeconomics.com

The annual inflation rate in Spain increased to 1.5 percent in April 2019 from 1.3 percent in the previous month and matching a preliminary estimate and market expectations. It was the highest inflation rate in five months, mainly driven by cost of tourist packages and transportation.

Year-on-year, prices went up further for transport (3.2 percent from 3.0 percent in March), namely air transportation; hotels, cafes & restaurants (2.3 percent from 1.8 percent), mostly due to accommodation services; clothing & footwear (1.1 percent from 0.9 percent); and health (1.0 percent from 0.9 percent). Additionally, cost of recreation & culture rebounded (0.3 percent from -1.6 percent), boosted by tourist packages.

Meanwhile, prices eased for food & non-alcoholic beverages (0.8 percent from 0.9 percent), led by fresh pulses & vegetables (5.9 percent vs 7.8 percent); housing & utilities (2.0 percent from 2.1 percent), driven by electricity & gas (3.6 percent vs 0.7 percent); miscellaneous goods & services (1.4 percent from 1.5 percent); communications (0.1 percent from 1.4 percent); and alcoholic beverages & tobacco (0.7 percent from 1.0 percent). Also, inflation was steady for education (at 1.0 percent, the same as in March) and furnishings (at 0.6 percent). 

Annual core inflation, which excludes volatile items such as food and energy, rose to 0.9 percent in April from 0.7 percent in March. 

On a monthly basis, consumer prices went up 1.0 percent, after a 0.4 percent gain in the prior month and in line with a flash estimate and market consensus. Main upward pressure came from clothing & footwear (10.5 percent from 4.4 percent), due to the the new spring-summer season.

The harmonized index of consumer prices advanced 1.6 percent year-on-year (from 1.3 percent in March), and increased 1.1 percent from the previous month (from 1.4 percent in March).




Tuesday April 30 2019
Spain Inflation Rate at 5-Month High in April
INE | Stefanie Moya | stefanie.moya@tradingeconomics.com

The annual inflation rate in Spain rose to 1.5 percent in April 2019 from 1.3 percent in the previous month and matching market expectations, a preliminary estimate showed. It is the highest inflation rate in five months mainly boosted by cost of tourist packages.

On a monthly basis, consumer prices are expected to increase 1 percent, after a 0.4 percent gain in March and slighlty below market forecasts of 1.1 percent rise. 

The EU-harmonised index is set to advance 1.6 percent year-on-year, following a 1.3 percent increase in the previous month and in line with market consensus. Compared to the prior month, the index is seeing rising 1.1 percent, after a 1.4 percent gain in March.


Tuesday April 30 2019
Spain Q1 GDP Growth Beats Forecasts
INE | Stefanie Moya | stefanie.moya@tradingeconomics.com

Spain’s economy advanced 0.7 percent on quarter in the three months to March 2019, following a 0.6 percent expansion in the previous period an above market consensus of a 0.6 percent increase, a flash estimate showed. It was the strongest growth rate since the last quarter of 2017, as fixed investment rebounded while net trade contributed negatively to the GDP growth.

According to preliminary estimates, fixed investment grew 1.5 percent, rebounding from a 0.2 percent contraction in the prior quarter, mostly driven by investment in tangible fixed assets shrank (1.9 percent from -0.2 percent in Q4), of which machinery, equipment, weapon system and biological resources (3.8 percent from -2.7 percent). Investment in intellectual property products shrank 1.0 percent after expanding 0.5 percent in the previuos period. Meantime, government spending expanded 0.4 percent, the same pace as in the in the fourth quarter of 2018 while household consuptiom slowed to 0.3 percent from 0.4 percent. 

Both exports (-0.5 percent from 0.7 percent) and imports (-1.1 percent from a flat reading) contracted.

On the production side, the industrial activity advanced 1.4 percent in the three months to March, after contracting 1.0 percent and construction output grew 1.8 percent (vs 1.0 percent in Q4). On the other hand, the primary sector shrank 2.0 percent in the first quarter of the year, after expanding 4.6 percent in the prior period while services output rose 0.8 percent, the same pace as in the previous quarter. 

On an annual basis, the GDP is expected to expand 2.4 percent in the first quarter of 2019, higher than a 2.3 percent growth in the prior quarter and beating market forecasts of a 2.3 percent expansion.




Thursday April 25 2019
Spain Jobless Rate Rises to 14.7% in Q1
INE | Stefanie Moya | stefanie.moya@tradingeconomics.com

The unemployment rate in Spain rose to 14.7 percent in the first quarter of 2019 from 14.45 percent in the previous period and above market expectations of 14.38 percent. Among regions, the highest rates were recorded in Extremadura (22.5 percent), Andalucía (21.1 percent) and Canarias (21.0 percent) and the lowest in Comunidad Foral de Navarra (8.2 percent), País Vasco (9.6 percent) and Aragón (10.5 percent).

The number of unemployed people went up by 49,900 to 3.354 million, with the highest increases seen in lles Balears (+38,100), Castilla y León (+11,600) and Principado de Asturias (+10,500). By age, unemployment among people aged with more than 55 dropped by (-4,600) while increased for those aged 20-24 (2,700) and those aged 25-54 (48,600).

Employment advanced by 93,400 thousand to 19.471 million. Job gains were registered in agriculture (+14,100), construction (+1,400) and industry (+200) while the service sector lost jobs (-109,200). Employment in the public sector rose by 2,600 to 3.214 million while in the private dropped by 96,100 million to 16.257 million. Among regions, Andalucía (+15,900), País
Vasco (+5,300) and Extremadura (+5,100) added the most jobs. 

The number of active people declined by 43,500 thousand to 22.825 million.




Wednesday April 24 2019
Spain Posts Biggest Trade Gap for February since 2012
Ministerio de Industria, Comercio y Turismo | Luisa Carvalho | luisa.carvalho@tradingeconomics.com

The Spanish trade deficit rose to EUR 2.63 billion in February 2018 from EUR 2.17 billion in the same month of the previous year. It is the widest trade shortfall for a February month since 2012, as imports surged 3.6 percent and exports increased at a softer 1.9 percent.

Imports rose 3.6 percent from a year earlier to EUR 25.65 billion in February, primarily driven by higher purchases of capital goods (2.7 percent), of which machinery for industry (6.2 percent), electrical appliances (10.9 percent) and office equipment and telecommunications (13.9 percent); chemicals (2.4 percent), mostly medicines (12.6 percent); energy products (8.7 percent), namely oil and related (5.9 percent) and gas (27.2 percent); vehicles (1.7 percent); manufactured goods (7.6 percent); non-chemical semi-manufactures (6.1 percent) and durable consumer goods (10.8 percent). Meanwhile, imports fell for food, beverages & tobacco (-3.1 percent), such as oils & fats (-15.5 percent) and sugar, coffee and cocoa (-16.1 percent).

Among major trading partners, purchases went up from China (13.7 percent), the US (6.5 percent) and the UK (5.2 percent) but decreased from the Euro Area (-1.5 percent), namely from France (-6 percent), Italy (-2.4 percent) and Portugal (-3.7 percent).

Exports grew at a slower 1.9 percent to EUR 23.02 billion, led by shipments of capital goods (2.3 percent), namely machinery for industry (6.1 percent) and office equipment and telecommunications (31.9 percent); food, beverages & tobacco (5.1 percent), mainly fruits and vegetables (5.7 percent); chemicals (6.7 percent), of which medicines (12.6 percent) and plastics (1.9 percent); non-chemical semi-manufactures (6.6 percent); manufactured goods (0.6 percent); durable consumer goods (3.7 percent) and other products (10.8 percent). In contrast, overseas sales declined for vehicles (-0.5 percent); energy products (-13.9 percent) and raw materials (-10 percent).

Among major trading partners, there were gains in exports to the Euro Area (2.1 percent), in particular to France (6.4 percent), Italy (1.7 percent), Portugal (5.4 percent) and the Netherlands (15 percent). Shipments also rose to the UK (9.5 percent), the US (11.7 percent) but they fell sharply to China (-20.5 percent).

Considering the first two months of 2019, the trade deficit widened to EUR 7.11 billion from EUR 6.10 billion in the same period of 2018, as imports grew 2.2 percent to EUR 52.66 billion and exports increased only 0.3 percent to EUR 45.54 billion.



Friday April 12 2019
Spain Inflation Rate Confirmed at 1.3% in March
INE | Rafael Gonzalez | rafael.gonzalez@tradingeconomics.com

The annual inflation rate in Spain edged up to 1.3 percent in March of 2019 from 1.1 percent in the previous month, matching a preliminary estimate and market expectations. Prices advanced faster mainly for transport and housing.

Year-on-year prices rose faster for transport (3.0 percent vs 1.8 percent in February), mostly due to fuels (6.3 percent vs 4.2 percent); housing & utilities (2.1 percent vs 0.9 percent), driven by electricity & gas (3.6 percent vs 0.7 percent); miscellaneous goods & services (1.5 percent vs 1.4 percent) and for clothing & footwear (0.9 percent vs 0.8 percent).

On the other hand, cost slowed for food & non-alcoholic beverages (0.9 percent vs 1.4 percent), led by fresh pulses & vegetables (5.9 percent vs 7.8 percent); communications (1.4 percent vs 1.5 percent) and alcoholic beverages & tobacco (1.0 percent vs 1.2 percent). Also, inflation was steady for hotels, cafes & restaurants (at 1.8 percent); health (at 0.9 percent); education (at 1 percent) and furnishings (at 0.6 percent). Meantime, prices for recreation & culture continued to fall (-1.6 percent, the same pace as in February).

Annual core inflation, which excludes volatile items such as food and energy, came at 0.7 percent, the same as in February. It was the lowest rate since July 2016.

On a monthly basis, consumer prices rose 0.4 percent, following a 0.2 percent gain in February and matching an earlier estimate and market expectations. In particular, cost for clothing & footwear rebounded sharply (4.4 percent vs -1.5 percent), due to the beginning of the new season.

The harmonized index of consumer prices advanced 1.3 percent year-on-year (from 1.1 percent in February), and increased 1.4 percent from the previous month (from 0.2 percent in February).


Friday March 29 2019
Spain Q4 GDP Growth Revised Lower to 0.6%
INE | Joana Ferreira | joana.ferreira@tradingeconomics.com

Spain's quarterly economic growth was revised lower to 0.6 percent in the last three months of 2018 from a preliminary estimate of 0.7 percent and compared to the July-September period's 0.5 percent. Net external demand contributed positively to the expansion, while household consumption rose at a softer pace and fixed investment contracted.

Exports surged 0.7 percent in the fourth quarter (vs -0.8 percent in Q3) while imports were unchanged (vs -0.9 percent in Q3).

Household consumption growth eased to 0.4 percent from 0.6 percent in the previous period; and government spending expansion also slowed to 0.4 percent from 0.8 percent. Meanwhile, fixed investment shrank 0.2 percent (vs 0.2 percent in Q3), as investment in tangible fixed assets dropped (-0.3 percent vs 0.2 percent in Q3) led by machinery, equipment, weapon system and biological resources (-2.7 percent vs -0.3 percent). Investment in intellectual property products, however, advanced 0.5 percent in the fourth quarter, after a 0.3 percent gain in the previous three-month period.

On the production side, services output growth was unchanged at 0.8 percent in the fourth quarter while construction expansion eased to 1 percent from 1.9 percent. By contrast, industry output continued to contract (-1 percent vs -0.3 percent in Q3) due to a decline in manufacturing (-0.3 percent vs -0.4 percent). Agriculture activity rebounded sharply (4.6 percent vs -3.6 percent).

On an annual basis the economy grew by 2.3 percent in the three months to December, also below a flash estimate of 2.4 percent, and down from a revised 2.5 percent in the third quarter. This was the weakest growth rate since the last quarter of 2014.

Considering 2018 full year, Spain's economy grew 2.6 percent, compared to a 3.0 percent expansion in 2017. Spain's Government forecasts 2019 GDP growth at 2.2 percent.


Thursday March 28 2019
Spain Inflation Rate at 4-Month High of 1.3%
INE | Joana Taborda | joana.taborda@tradingeconomics.com

The inflation rate in Spain is seen rising to 1.3 percent in March of 2019 from 1.1 percent in February and compared to market expectations of 1.1 percent. It is the highest inflation rate in four months, mainly due to a rise in fuel cost. Also, electricity prices fell less this month than in 2018.

On a monthly basis, consumer prices are set to advance 0.4 percent, after rising 0.2 percent in February.

The EU-harmonised index is expected to increase 1.3 percent year-on-year, following a 1.1 percent gain in the prior month and below market expectations of 1.5 percent. Compared to the previous month, the index is seen jumping 1.4 percent after a 0.2 percent rise in the previous month. 


Thursday March 21 2019
Spain Trade Gap Widens in January as Exports Fall
Ministerio de Industria, Comercio y Turismo | Stefanie Moya | stefanie.moya@tradingeconomics.com

The Spanish trade deficit widened to EUR 4.48 billion in January 2019 from EUR 3.94 billion in the corresponding month of the previous year. It was the largest trade shortfall for a January month since 2011, as imports rose 0.9 percent year-on-year while exports fell 1.3 percent.

Imports went up 0.9 percent from a year earlier to EU 27.01 billion in January, mostly boosted by higher purchases of capital goods (13.5 percent); food, beverages and tobacco (3.7 percent); chemicals (2.0 percent); automotive sector (1.1 percent); durable consumer goods (4.0 percent); non-chemicals semi-manufactures (1.3 percent) and consumption manufactures (1.0 percent). On the other hand, imports declined for energy products (-13.2 percent); capital goods (-12.6 percent); and other products (-34.6 percent)

Among major trading partners, imports increased from China (10.7 percent) and the US (24.7 percent), but decreased from the UK (-13.2 percent) and the Euro Area (-1.1 percent), namely Germany (-0.3 percent) and Italy (-6.7 percent).

Exports dropped 1.3 percent to EUR 22.53 billion in January, mainly due to lower sales of automotive sector (-4.6 percent); energy products (-22.8 percent); consumption manufactures (-15.4 percent); durable consumer goods (-0.6 percent) and other products (-14.0 percent). Meanwhile, sales rose for capital goods (8.6 percent); food, beverages and tobacco (4.6 percent); non-chemicals semi-manufactures (3.8 percent) and chemicals (1.2 percent).

Among major trading partners, sales declined to the Euro Area (-3.1 percent), of which France (-4.5 percent) and Italy (-2.7 percent) while exports to Germany advanced (1.9 percent). Sales also decreased to the UK (-0.8 percent) and China (-6.6 percent) but went up to the US (1.9 percent).