Spain Reports Current Account Surplus as Rajoy Predicts Recovery
Spain’s current-account surplus increased in June, signaling progress in Prime Minister Mariano Rajoy’s plan for an export boom and tourism to lift the euro region’s fourth-largest economy out of recession.
The surplus of 2.57 billion euros ($3.4 billion) follows one of 2.4 billion euros in May, data released today by the Bank of Spain in Madrid show. The country had a deficit of 981 million euros in June 2012.
Spain’s current account registered a surplus of 1.36 billion euros over the first half of the year, compared with a deficit of 17 billion euros over the same period in 2012.
The Spanish government predicts a recession that started in 2011 will end this year. Deputy Trade Minister Jaime Garcia-Legaz Ponce said last week that exports will rise to a record in 2013, citing an improvement in the country’s competitiveness. Unemployment (UMRTEMU) dropped from its highest level in the nation’s democratic history in the second quarter, while remaining the second-highest in the 17-nation euro region, after Greece, at 26 percent.
Ford Motor Co., the second-largest U.S. automaker, confirmed last month that it’ll start manufacturing new models at its plant in Valencia in the south east of Spain following an accord with unions in April.
Foreign-portfolio investment fell in June, according to Bank of Spain data. Non-residents withdrew 12.5 billion euros in stock and bond investments, after an inflow of 4.1 billion in May. Over the first six months of the year, outflows amounted to 16.2 billion euros, down from 92.7 billion last year.
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