Spain Current Account

The Current Account reflects the balance of transactions between Spanish residents an the rest of the world. Being part of the balance of payments, it records incomes and real transactions (trade of goods and services) between residents and the rest of the world, over a certain period of time.

The current account is divided into the following parts:

• Trade Balance shows difference between exports and imports.
• Balance of services: the balance of goods and services, which is also based on exports and imports.
• Investment income balance: includes wages and profits from foreign deposits (excluding payments made by foreign investors).
• Balance of transfer payments: transfer payments between residents and non-residents; these transfer payments are not related to the above-mentioned components and may include donations, aids, private money transfers, pension payments, alimony, etc.

In other words, the current account includes operations between Spanish residents and non-residents in relation to goods, services, primary (investment) and secondary (transaction) income. A positive current account balance indicates that the country is a net lender to the rest of the world. A negative value shows that the nation is a net borrower.

The impact of the indicator on the euro may vary depending on current economic conditions. Most often the growth of the current account is seen as positive for the euro quotes.