Despite contracting for the eight consecutive quarter in the second quarter of 2013, Spain’s economy was signaling that it could return to growth soon, economic analysts said.
Gross domestic product (GDP) contracted 0.1 percent in the second quarter from the first, according to preliminary data released by the country’s national statistics agency.
The number was in line with economists’ forecasts and marks eight quarters of contraction. In the first quarter the economy contracted by 0.5 percent.
Furthermore, Spain’s trade deficit fell by 68.8 percent in the first half of 2013 to 5.8 billion euros, the Economy Ministry Luis De Guindos announced.
According to the data declared by secretary of state for trade Jaime García-Legaz, exports were valued at 118.7 billion euros, up 8 percent from the same six-month period of 2012, while imports fell 3.2 percent to 124.5 billion euros. Spain had not exported that much since 1971.
The export-import cover ratio (exports as a percentage of imports) stood at 95.3 percent for the first six months of 2013, 9.8 percentage points higher than in the same period of last year.
The sharply lower trade deficit was due to a 9.5-percent increase in the total number of exporting companies, as well as the improved competitiveness of Spanish enterprises and their greater ability to reach new markets, including ones outside the euro zone, García-Legaz said.
The figures are a positive start but the economy had still far to go.
Source: El País, www.cnbc.com