SHARE
COPY LINK

EXPORT

Spain bags rare current account surplus

Spain recorded a current account surplus in January-June this year for the first time on record as exports and investor confidence in the recession-hit country strengthened, officials said.

Spain bags rare current account surplus
A worker checks a car at the Seat factory in Martorell near Barcelona.

The current-account balance, the broadest measure of a country's trade and financial exchanges with the outside world, showed a surplus of €1.357 billion ($1.8 billion) for the first half of 2013, the central bank said.

That contrasted sharply with a shortfall of nearly €17 billion in the same period last year.

"This change mainly reflects the notable improvement in the trade deficit, followed by an improvement in returns on investments and services," the Bank of Spain said in a statement.

It was the first time Spain had recorded a surplus for the first half of the year since current records began in 1990, and its first half-yearly surplus since 1997.

Spain's conservative government says the economy, the eurozone's fourth-biggest, is heading out of its two-year recession. The latest growth figures showed the pace of economic contraction slowed in the second quarter.

Friday's data also indicated strengthening investor confidence in Spain, which last year turned to its eurozone partners to bail out its banking sector but resisted pressure to seek a full sovereign bailout.

Spain recorded an investment inflow of €39.8 billion in the first half of 2013, compared to an outflow of €225 billion in the same period last year.

In trade, the shortfall of exports to imports was less in the first half of 2013, shrinking to €2.71 billion from €15.65 billion in the first half of 2012, the bank said.

Spain's services sector increased its surplus to €17 billion from €15.19 billion a year earlier.

In another key sector, tourism, the surplus grew by 4.7 percent to €13.88 billion. The industry reported a record number of foreign tourists coming to Spain in July this year.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

CHINA

Denmark makes deal to export millions of sausages to China

Denmark will on Wednesday announce a series of new bilateral agreements with China at a ceremony in Beijing, where Prime Minister Lars Løkke Rasmussen is currently on an official visit.

Denmark makes deal to export millions of sausages to China
Photo: Iris

One of the agreements involves the export of pre-cooked pork from Denmark to the Chinese market.

This agreement will be worth as much as 250 million kroner ($36.7 million) per year to the Danish export market, estimates the Danish Agriculture and Food Council according to news agency Ritzau.

“The agreement gives specific access for export of, amongst other things, Danish sausages to China and means that a larger proportion of Danish pork can be processed in Denmark, which in the end can result in more jobs,” the PM told Ritzau.

This is not the first time a so-called ‘sausage deal’ has been tabled with China.

In 2014, then-minister for food Dan Jørgensen declared sausage exports worth millions to Danish producers.

But a number of food production scandals in China damaged these deals after rules were tightened, reports Ritzau.

Chinese officials decided to reevaluate the agreement with Denmark at the time.

“It was a case of China, in the middle of a long negotiation process, changing its food laws, so we had to update protocols. So we have had to go through a completely new round of negotiations,” Christian Dehlholm, consultant to the state in China, told Ritzau.

Rasmussen is accompanied in China by food and environment minister Esben Lunde Larsen and acting health minister Karen Ellemann, as well as a number of business representatives.

READ ALSO: Danish firms to build giant new bridge in China

Six agreements between the countries are expected to be signed during the Beijing ceremony, with several more to follow over the coming days.

In addition to the deal on sausage exports, aggeements are also expected to be made on export of Danish organic produce to China and the loan of two panda bears to Copenhagen zoo, reports Ritzau.

The agreements are part of a broader programme containing 58 different points on collaboration between the two countries.

Denmark and China established a strategic partnership in 2008.