MADRID (Reuters) - Spain's current account surplus almost halved in November from October, the Bank of Spain reported on Friday, pulled lower by a relatively weak export sector which has been tabbed to play a big part in economic recovery.
The current account was 873 million euros (729.4 million pounds) in November, down from 1.7 billion euros in October, marking the seventh straight month in surplus and below the 1 billion surplus registered in the same month last year.
The month-on-month drop was largely due to a rise in the trade deficit, which increased to 1.2 billion euros in November from 922 million euros in October as exports fell more steeply than imports.
Spain's current account suffered a record deficit of 12 billion euros in January 2008, one of the world's largest shortfalls in relative terms.
But in July 2012 this turned to surplus for the first time since 1998. The economy has been in and out of recession since a property bubble burst six years ago, gutting domestic demand and sending unemployment soaring.
With domestic demand still fragile amid the high jobless levels, exports and investment have been seen as important motors for the tentative Spanish recovery.
Bank of Spain figures showed foreign investment in Spain rose to 26.4 billion euros in the eleven months to November from 17.9 billion euros a year earlier as investors search for bargains after the five-year economic downturn.
The economy grew in the second half of last year for the first time in more than two years, prompting many economists and the Spanish government to raise forecasts for economic expansion in 2014.
The inflow of fresh foreign cash will aid this, as domestic companies still struggle with relatively higher borrowing costs and public investment has been slashed.
Spanish inflation remained at low levels, a sign of the continuing pressure on consumer domestic sector, although economists saw little chance of a deflationary spiral developing.
yahoo.com
The current account was 873 million euros (729.4 million pounds) in November, down from 1.7 billion euros in October, marking the seventh straight month in surplus and below the 1 billion surplus registered in the same month last year.
The month-on-month drop was largely due to a rise in the trade deficit, which increased to 1.2 billion euros in November from 922 million euros in October as exports fell more steeply than imports.
Spain's current account suffered a record deficit of 12 billion euros in January 2008, one of the world's largest shortfalls in relative terms.
But in July 2012 this turned to surplus for the first time since 1998. The economy has been in and out of recession since a property bubble burst six years ago, gutting domestic demand and sending unemployment soaring.
With domestic demand still fragile amid the high jobless levels, exports and investment have been seen as important motors for the tentative Spanish recovery.
Bank of Spain figures showed foreign investment in Spain rose to 26.4 billion euros in the eleven months to November from 17.9 billion euros a year earlier as investors search for bargains after the five-year economic downturn.
The economy grew in the second half of last year for the first time in more than two years, prompting many economists and the Spanish government to raise forecasts for economic expansion in 2014.
The inflow of fresh foreign cash will aid this, as domestic companies still struggle with relatively higher borrowing costs and public investment has been slashed.
Spanish inflation remained at low levels, a sign of the continuing pressure on consumer domestic sector, although economists saw little chance of a deflationary spiral developing.
yahoo.com
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