The weight of exports in the Spanish economy has seen a notable increase in the last 15 years, going from 26% of the gross domestic product (GDP) in 2008 to 39% in 2023, as highlighted by the Bank of Spain in its latest report. , what does that mean an increase of 9 points. Among the sectors that led this growth were: semi-finished productslike the chemicals And metallicas well as the foodTHE capital goods -especially transport equipment- and the automotive sector. This “extraordinary growth” has been constant both in the variety of exported products as for international destinations, placing Spain ahead of the major Eurozone economies in terms of export growth.
The analysis, published on the agency’s blog under the title “The Spanish export bonanza since 2008: what do we export and to which destinations?”However, it warns of possible future risks. The Bank of Spain stresses that The increasing fragmentation of international trade flows could threaten the continuity of this positive trend, given global uncertainty.
Despite this warning, the performance of Spanish exports since 2008 has surpassed that of countries like France and Italyand in 2023, the weight of foreign sales in Spanish GDP is only 9 percentage points lower than that of Germany, a substantial improvement compared to the difference of 18 points recorded in 2008. This export success is attributed, to a large extent, to greater competitiveness and the growing internationalization of Spanish companies, which have gradually expanded their presence in foreign markets in recent years.
In fact, the Minister of Economy, Trade and Business, Carlos Body, celebrated this week the good internationalization data of Spanish companies and stated that exports of non-tourist services already exceed tourist services. The head of the Economy highlighted the good performance of the foreign sector, which is showing extraordinary results. “Spain has managed to finance itself efficiently from abroad, unlike the last financial crisis, when the country was excessively dependent on foreign funding.” The minister, who was attending a conference at the General Council of Economists, highlighted the good performance of exports, which reflects the country’s strong ability to compete in international markets and diversify its sources of income. This improvement in the external sector is a key element of sustainable economic growth, complementing progress in the labor market and other areas of the economy.
Services gain weight on the American continent
Exports of services have recorded an even greater increase. Between 2008 and 2023, these have increased by 66%, increasing their weight in GDP from 8.2% to 12.5%. This strong growth is explained both by boom in tourism services and increase in exports of non-tourism services.
The Bank of Spain also highlights a greater geographical diversification of Spanish exports. Although the Eurozone remains the main destination for Spanish products, With 55% of the total in 2023, Spain’s presence has grown in markets such as Morocco, the United States, China and Turkey.which together absorbed 12.1% of exports of goods, almost 4 points more than in 2008.
In terms of services, diversification is also evident, with a significant increase in tourist exports to North and South America, especially after the pandemic. This change strengthens the ability of the Spanish economy to adapt to an increasingly dynamic international environment.
In addition, Spain’s trade surplus with the European Union reached 3.381 billion euros in Julyremaining in positive territory without interruption since January 2017, according to customs declared trade data. The foreign sector, as well as investment, played a key role in economic growth in the first quarter, leading to GDP growth of 0.8%, higher than expected. This dynamism led the Government to revise upwards its economic forecasts, setting annual growth at 2.4%.
Geopolitical framework
Despite the solid growth of Spanish exports in recent years, the Bank of Spain has warned of the need to be cautious about the future, due to the existence of risks that could slow down this dynamism. Among the main risk factors indicated is the current situation geopolitical framework, marked by strong uncertaintyincreasing customs tariffs and the growing fragmentation of international trade, which could negatively affect the development of exports.
At the national level, the Bank of Spain has also expressed its concern about the increase in labor costs per unit of product (LCU)which have increased in Spain more than in the rest of the European Union since the beginning of the Covid-19 pandemic. The organization warns that a persistent deterioration in this competitiveness indicator, similar to that observed before 2008, could weaken exports and negatively affect the external balance of the Spanish economy.
