The cost of energy catapults the trade deficit by 500%

The rise in the price of energy imports increases the trade deficit gap in Spain.

NewsEditor
NewsEditor
18 July 2022 Monday 07:56
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The cost of energy catapults the trade deficit by 500%

The rise in the price of energy imports increases the trade deficit gap in Spain. Until May, the imbalance between exports and imports has risen to 26,570 million euros, due to the negative 4,420 million a year ago. It is a jump of 501%, according to trade statistics published this Monday by the Ministry of Industry, Trade and Tourism.

Like many other European countries, Spain relies on imports for its oil and gas supplies, and prices have soared to record highs following the Russian invasion of Ukraine.

In this context, the value of imports of energy products counting only May more than doubled with respect to the previous year. The value of gas imports soared 342% to 2.15 billion euros, while oil imports nearly doubled (94%) to 5.29 billion euros.

Continuing in May, exports rose by 28.8%, to 35,045.1 million euros, while imports rose by 47.1%, to 39,804 million euros. As a result, the trade balance registered a deficit of 4,758.7 million euros, due to a surplus of 140.1 million euros a year ago.

Imports rose 40.7% from the same period a year earlier to €182.54bn, driven by energy products, while exports rose 24.4% to €155.97bn, according to the ministry.

Such is the impact of energy prices that without taking into account energy in May, a surplus of 75 million euros was achieved in trade, compared to 2,102 a year ago.

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