Spain Trade Balance

Spanish Trade Balance is a report reflecting the difference between national exports and imports, as well as the movement of capital over a selected period. Economists use the Trade Balance to evaluate the structure of trade flows between countries. This is a macroeconomic indicator which offers information about the economic situation in the country as a whole, allows you to find out all the income the country received from other countries, for example, in the form of imports and exports of goods, services, capital or transfers over a certain period of time.

The Trade Balance structure includes four basic components:

• Current account balance: this is the most important and frequently used method to find out the current state of the national economy. This includes the import and export of goods and services, rents and transactions.
• Balance of capital movements: reflects the movement of capital such as subsides from other countries or purchase and sale of non-economic benefits.
• Economic balance: collects data on loans from other countries, capital investments or deposits from abroad.
• Errors and omissions: the purpose of this report is to register errors and omissions from previous reports which may arise due to the difficulties in the accurate calculation of national exports and imports.

Two types of trade balance exist depending on the results obtained:

• Trade surplus: the balance is favorable and has positive results, i.e. export sales exceed imports.
• Trade deficit: the balance is unfavorable, i.e. the amount of imports is obviously higher than exports in a certain period.

Countries generally do not seek equality between each of these metrics separately, but they usually try to achieve the equilibrium of the trade balance. The impact of the Trade Balance on euro quotes is ambiguous and depends on the context of business cycles and other economic indicators, such as GDP.