Spain's trade deficit falls by 34.4% in July 2024: A sign of strength in foreign trade

In July 2024, Spain saw a significant reduction in its trade deficit, which fell by an impressive 34.4% year-on-year to €3.214 billion. 

This comes as Spain's external sector continues to show resilience in the face of a complex international economic landscape. 

According to the Ministry of Economy, Trade and Enterprise, Spanish merchandise exports reached a record high in July, reaching €33.2 billion, up 9.3% year-on-year.

Spanish exports of goods grew faster in July than those of the euro area and the EU-27, which recorded year-on-year increases of 7.4% and 7.2% respectively. Spain's main export sectors showed robust growth, including:

• Raw materials: +27.6% year on year
• Food, beverages and tobacco: +14.4%
• Durable consumer goods: +13.5%
• Energy products: +13.1%

This growth in exports contributed to an increase in Spain's trade surplus with the EU, which rose to €2.192 billion. 

Since 2017, Spain has consistently maintained a trade surplus with the European Union, further highlighting its strong trading relationship with EU member states.

Outside the EU, Spanish exports also grew strongly, increasing by 14.9% year-on-year to non-EU destinations. 

Countries such as the United States, the United Kingdom and China proved to be important markets, with record export levels in July.

• Exports to the UK increased despite the challenges posed by Brexit
• Exports to the US and China grew by 5.5% and 6.5% respectively

Spain's energy deficit continued its downward trend, falling by 17.5% year on year to €2.159 bn. 

The decline in the non-energy deficit was even more remarkable, falling by 53.8% to just over EUR 1 bn. 

This reduction was largely driven by strong energy exports, in particular gas and oil, which grew by 13.1% year-on-year in July, the fourth consecutive month of double-digit growth.

• The trade deficit fell by 34.4%, pointing to Spain's improving trade balance.
• Exports reached a record €33.2 billion, driven by raw materials, food and energy products.
• The non-energy deficit fell by 53.8% and the energy deficit by 17.5%.
• The trade surplus with the EU increased from €1.196 billion in July 2023 to €2.192 billion.

This steady growth shows Spain's robust economic position in foreign trade, reflecting its adaptability and strength in key global markets.