Monday, 22 September 2014

Exports grew by 1.6% to July

   
 
In the first seven months of 2014, Spanish exports of goods grew by 1.6% year-on-year to 140.85 billion euros, the highest figure since records began in 1971. In real terms, growth was even higher, at 2.3%, since export prices measured by Unit Value Indices (UVIs) fell by 0.6%.
​The good performance of Spanish exports in January-July 2014 contrasts with the decline seen in France (-1.7%) and the United Kingdom (-15.1%). In these seven months, our growth outperformed that of the Eurozone (+0.9%) and the European Union as a whole (+0.2%), although it was lower than Germany's growth (+3.3%). Outside the EU, United States exports grew by 3.2% while Japan's exports were up by 3.3%.
Meanwhile, imports amounted to 154.56 billion euros, up by 6.5% on the same period of 2013. In real terms, imports grew by 9.1% due to the downward trend in prices measured by UVIs (-2.4%).
In the first seven months of 2014, the trade deficit stood at 13.71 billion euros (a deficit of 6.61 billion in January-July 2013). The non-energy surplus posted a figure of 9.84 billion euros while the energy deficit fell by 3.7% to 23.55 billion euros. The coverage rate stood at 91.1%, 4.4 points lower than for the same period last year (95.5%).

Geographic areas

Despite the weak economic recovery of the European Union and the Eurozone, in the first seven months of 2014, Spanish exports to those two areas grew by 4.5% (+3.6% in 2013) and 4.8% (+2% in 2013) respectively. In particular we should mention the increase in exports to Germany, (+7%), to Portugal (+8.7%) and to the Netherlands (+12.7%).
Demand from non-EU countries weakened in this period due to the slowdown experienced by some emerging economies and the appreciation of the euro against the most important currencies in the early months of the year, which made sales from Spain outside the monetary union more expensive. Thus, exports to extra-EU countries fell by 3% year-on-year and accounted for 36.4% of the total. Among others, exports shrank to BRICS countries (barring China) and to the Middle East. However, the period saw notable growth in sales to South Korea (+105.4% year-on-year), Taiwan (+74.9%), Japan (+19.6%) and the United States (+14.7%).

In terms of contribution to the rate of change in total exports, the main export destinations at a worldwide level were Germany (which accounted for 0.7 percentage points of the increase in total exports in January-July 2014, mainly due to the higher sales of automobiles and motorcycles), Portugal (0.6 points, particularly related to the other foods, and automobile and motorcycle subsectors), the United States (0.6 points, mainly due to growing exports of automobiles and motorcycles, and oil and oil derivatives), and South Korea and Netherlands, both contributing 0.4 points, especially due to higher sales of oil and oil derivatives.

Economic sectors

The most important sectors in Spain's export pattern in 2014 were the automotive sector, whose exports grew by 6.8% and accounted for 15.2% of the total, the food, beverage and tobacco sector, whose exports increased by 6.3% in the period and accounted for 15.6% of the total, and the manufactured consumer goods sector, whose overseas sales grew by 6.3% and accounted for 8.8% of the total.
Thus, in terms of contribution to export growth, the automotive sector contributed 1 percentage point; the food, beverage and tobacco sector 0.9 points; and the manufactured consumer goods sector 0.5 points. By subsector, the standout positive contributions were from automobiles and motorcycles (0.8 points, largely due to higher sales to the United Kingdom, Germany, the United States and France), road haulage equipment (0.6 points, mainly due to increased sales to France, the United Kingdom, Germany and Austria), other foods (0.6 points, mainly due to rising exports to Italy and, to a lesser extent, to the United States, Portugal and France), and gas (0.5 points, with strong sales to Japan, Argentina and South Korea).

With regard to imports, the 11.6% increase in the purchase of capital goods should also be noted. The sector has posted 16 months of back-to-back increases which reflects the incipient recovery of economic activity and company investment in equipment. In particular, imports of industrial machinery (14.7%) and transport equipment have increased (13.2%). Meanwhile, in January-July 2014, the automotive sector significantly stepped up its purchases abroad (a 23.3% increase).
Meanwhile, in terms of contribution to import growth, we should highlight the automotive sector, with a contribution of 2.4 points, divided between automobiles and motorcycles (1.4 points) and automotive components (1 point). The capital goods sector also posted standout results (1.9 points), in particular in its general use machinery and electrical devices subsectors (each with a contribution of 0.4 points). Other standout subsectors were clothing (0.7 points) and medicines (0.5 points).
The autonomous region with the best export results in January-July was the Region of Valencia, which contributed 0.9 points to the year-on-year increase in total exports; its exports accounted for 10.6% of the total and grew by 8.8%. In second place was Catalonia, with 0.7 points; its exports, 25.2% of the total, grew by 2.6%. Castile-Leon's contribution was 0.5 points (5.5% of the total, with exports up by 10.6%), while Navarre accounted for 0.4 points (3.4% of the total, with exports up by 11.4%).

In July, Spanish exports of goods grew by 8.7% year-on-year and amounted to 21.58 billion euros, the highest value of exports posted in a month since records began (1971). In real terms, growth was even greater, at 10.6%, since export prices measured by Unit Value Indices (UVIs) fell by 1.8%.
This significant growth of our sales abroad has meant that we have outperformed the export trend for the Eurozone (+1.8%), for the European Union as a whole (+0.8%), and for our principle trade partners. More specifically, German exports grew by 8.5% in July (the highest year-on-year growth since October 2012), while French exports shrank by 0.9% (the fifth year-on-year decline this year). Meanwhile, United Kingdom exports experienced another major drop of 18.2% (seven months of back-to-back declines).
Outside the EU, Japan has returned to positive figures (+3.9%) after the declines posted in May and June (-2.7% and -1.9% respectively) while the export drive to the United States continued in July, with exports up by 4.7%.
Meanwhile, Spanish imports amounted to 23.41 billion euros, 13.4% more than in July 2013, reflecting the recovery of internal demand. The increase is higher in real terms, at 14.9%, since prices measured by UVIs had fallen by 1.3%.
The trade balance in July 2014 showed a deficit of 1.83 million euros. The coverage rate stood at 92.2%, 4 points less than in July 2013 (96.2%). The non-energy balance showed a surplus of 1.42 billion euros (2.62 billion euros in July 2013) while the energy deficit shrank by 4.6%.

Geographic areas

The 16.8% growth in July in exports to the European Union as a whole contrasted significantly with the drop in the same month in 2013 (-3%). This increase boosted the figure for intra-EU exports, which amounted to 63.3%, versus 58.9% for the same month last year. A similar performance could be seen in the Eurozone, with a 16% increase (-4.7% in July 2013), especially due to the growth in sales to our three most important trade partners: France (up by 22.5% year-on-year), Germany (+16.5%) and Italy (+15.6%). Also, exports to the rest of the European Union increased by 19.6% year-on-year, driven mainly by improved sales to the United Kingdom (+22.6%).
Exports to non-EU countries shrank by 2.9% in July, mainly due to the worsening of the situation of a number of economies. For example, sales to Argentina slumped by 32.5% while sales to Brazil dropped by 13.2%.

Economic sectors

The boost to our exports in July is the result of the positive trend in most sectors, since with the exception of non-chemical semi-manufactured and other goods, exports from all other sectors have improved.
Thus, export contributions to year-on-year growth of automotive sector exports, which contributed 2.1 points, accounted for 15.1% of the total and were up by 14.9%. The second sector that most contributed to export growth was manufactured consumer goods, with 1.5 points; its exports, 9.2% of the total, grew by 18.1%. Next, with a 1.4 percent contribution, came the capital goods sector (20.3% of the total, up by 7%) and the food, beverage and tobacco sector (14.3% of the total, up by 10.1%). Then, with a contribution of 1.3 points, came the energy and chemical product sectors.
The most dynamic subsectors, those with the greatest contribution to export growth this month, were automobiles and motorcycles (1.9 points, led by sales to France and, to a lesser extent, to Germany, the United Kingdom and Italy), road haulage equipment (1.6 points, mainly due to higher sales to France and, to a lesser extent, to the United Kingdom, Austria and Germany), oil and oil derivatives (1.2 points, led by sales to France, the United Kingdom, the United States and Tunisia), and clothing (0.9 points).

No comments:

Post a Comment