The current account balance, which measures revenues and payments abroad for exchange of goods, services, income and transfers, reduced its surplus in the first nine months of the year until the 15.500 million euros, compared to 17,800 million for the same period last year, according to data released this Thursday by the Bank of Spain.
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The evolution of the current account balance in the first nine months of the year is explained by the increased deficit of the balance of goods and income secondary, compared to the higher surplus of the services balance and lower deficit of the primary income.
In particular, the balance of goods presented a deficit 23,200 million euros, above 21.600 million in the first three quarters of last year, whereas that of services rose by 300 million surplus, up to 49.500 million euros. Within this, the travel and tourism held in 38.600 million euros on its surplus, while the non-tourist services grew by 300 million euros, up to 10.900 million euros.
For its part, the balance of income primary income from work, investment, taxes on production and imports and subsidies) and secondary (transfers, personal current taxes, contributions and social benefits, etc) recorded a deficit of 300 million euros, compared to a deficit of 500 million euros in the same period of 2018.
income high school deepened its deficit and stood at 10.500 million euros. Meanwhile, the balance of the capital account decreased in the first nine months of the year its surplus of eur 500 million, up to 1,600 million euros.
So, the balance aggregate of the accounts current and capital, which determines the capacity or necessity of financing of the Spanish economy, recorded a surplus of 17,200 million euros, which is reduced with respect to the by 19,900 million euros last year.
Only in the third quarter, the current account balance reached a surplus of 7,800 million euros, adding 400 million more with respect to last year, due to a higher deficit of the balance of goods (10.100 million), the higher surplus of the services (21.500 million), the correction of the deficit of the primary income and the increased deficit of the secondary (3.600 million).
The capital account fell to 300 million in the third quarter of the year, so that the current account and capital account closed with a positive balance of 8,100 million, compared to 8.300 million last year.
Entry of capital
In terms of accumulated twelve months, the financing capacity stood at 26.300 million euros up to September, or 2.1 per cent of GDP, compared to 2.4% of GDP accumulated in the set of 2018 (29.100 million euros). In addition, external debt, gross amounted to 2.125 billion euros in the third quarter, 172,1% of GDP, up from 2.105 million (172% of GDP) that reached three months before.
on the other hand, the net international investment position excluding the Bank of Spain reached a negative balance of 802.000 million euros in the third quarter, balance more a debtor than that observed three months earlier (774.000 billion).
This evolution of the capital inflows came mainly explained by the contribution of the negative financial transactions (16.400 million), the result of a net increase in liabilities against non-residents higher than that of foreign assets.
the input or The output of capital is a balance resulting to take account of what the Spanish residents invest outside the country and what foreigners go to Spain in that same period.
