Spanish trade deficit rises 53.4 percent in 2014

Spain's trade deficit reached 24.472 billion euros (27.759 billion U.S. dollars) in 2014, rising by 53.4 percent compared to a year earlier, according to data unveiled Wednesday by the Spanish Ministry of Economy and Competitiveness.

The Ministry reported that imports increased more than exports last year influenced by Spain's economic recovery as GDP grew 1.4 percent in 2014.

Imports increased by 5.7 percent in 2014 compared to 2013 to rise to 264.506 billion euros, while exports rose by 2.5 percent to 240.034 billion euros.

Spanish authorities said domestic demand rose in 2014 thanks to rises of investment in machinery and equipment and private consumption. Imports belonging to the capital goods sector increased by 9.5 percent, while those of durable consumer goods and the manufacturer sector rose by 13 percent and 13.2 percent respectively.

The ministry highlighted the performance of the automobile sector, whose imports rose by 19.4 percent in 2014 and exports increased by 6.2 percent, accounting for 14.8 percent of the total volume of exports.

Exports to the European Union (EU) increased by 3.9 percent and represented 63.4 percent of the total, up from the 62.6 percent of 2013. Meanwhile, exports to euro zone countries represented 49.7 percent of the total.

Exports to Germany increased by 5.7 percent, followed by Italy, Portugal and France at 5.1 percent, 3 percent and 0.1 percent respectively.

The Spanish government expects to see an increase in exports this year as Spanish consumer prices continue to fall, thereby helping businesses reduce costs of production, according to the Spanish Secretary of State for Economy Inigo Fernandez de Mesa. (1 euro = 1.13 U.S. dollars) Endite