Spanish export companies continue growth path in 2016

 

Spanish export companies continue growth path in 2016

There is much to be positive about in a report from The Bank Of Spain which shows that the export of Spanish products grew by 2.1 percent in January of this year. Compared to a decline of 29 per cent for the same period last year, it represents a great leap forwards. It also reinforces the upward trend in the export activity of Spanish companies.

 

This is an aggregate growth figure as success hasn’t been achieved across the board. Exports to countries outside the EU fell one per cent but this figure is greatly skewed when it is considered that sales to Australia fell by 71.8 per cent.

On the up side, there were increases in the sectors of auto, beverages and tobacco, food, and chemicals. Their combined sales of 20.4 billion Euros in February of this year represented a year on year growth of 2.7 per cent. These figures are tempered by the fact that shipments of other goods, raw materials and energy fell off.

CLOSER ANALYSIS OF THE NUMBERS

Breaking it down further, the Euro Zone is Spain’s biggest market taking 67 per cent of its exports. There, this activity increased year on year by 4.7 per cent. Exports to the rest of the EU increased by 4.2 per cent. Germany increased its Spanish imports by 12 per cent, second placed Italy increased by 5.8 per cent, while the UK saw a rise of 4.2 per cent. Elsewhere, exports to France fell by 0.9 per cent.

A look at a month by month graph shows Spain started strong at the beginning of the financial year before falling off slightly and then growing each month until an all year high in July. Then there’s a drastic drop off which starkly shows the effect of the traditional holiday month of August. Following this, exports hold more or less steady until the end of the year until another slow month in January.

The high in July wasn’t just an all year high but an all time one. In that month, 23507852.81 thousand Euro was made through exports. To put some context on that figure, in the history of Spanish Exports, the average from 1962 to 2016 is 5847642.86 thousand Euro.

MORE SUCCESS

Following this positive news of increased export, in February 2016, Spain narrowed its trade gap by 13.6 per cent as exports increased faster than imports.

This marks the lowest trade gap since July 2015 and is the smallest recorded deficit for any given February.

Due to high imports of fuel and high added value goods, Spain systematically runs at a trade deficit.

 

For information, please contact corporate law firm Argali Abogados.

 

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