MADRID, May 31: Spain booked its first trade surplus in recorded history in March, central bank data showed on Friday, as a sharp plunge in imports from a deep recession offset a modest increase in exports.
The trade surplus stood at 1 billion euros ($1.31 billion) in March compared with a 2.7 billion euro deficit in the same month a year earlier, the data showed.
Exports have been the one bright spot in a gloomy economy struggling to recover from the effects of a property crash five years ago which pushed up debt and unemployment. Lower wage costs have made Spanish goods more competitive.
Exports grew 2.7 percent in March from the same period one year ago, while imports dropped 13 percent due to crumbling domestic demand.
Economy Minister Luis de Guindos had said earlier this month that Spain would book its first surplus in history in March, touting it as a sign of Spain’s competitiveness.
But one analyst said on Friday that a trade surplus driven by falling imports was not sustainable.
“A trade surplus is generally a good thing as it means that Spain is paying down its liabilities. But if the surplus is due to falling imports, this means Spain would have to stay in deep recession to sustain it,” said James Howat, analyst at Capital Economics.
Spanish economic output shrank 2 percent in the first quarter from a year ago, official data showed on Thursday.
The trade surplus helped Spain’s current account swell to 1.4 billion euros in March, up from a deficit of 3.2 billion euros in the same month a year earlier.
Spain also registered capital outflows of 5.2 billion euros in March, the month Cyprus was bailed out by its euro zone peers, reversing a trend of capital inflows in the six previous months.
($1 = 0.7660 euros)
(AGENCIES)
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