Spain’s First-Half Trade Results Show Persistent Energy Pressure and Broad Export Growth

The trade deficit reached 31,963.2 million euros, according to data released this Thursday by the Ministry of Industry, Trade and Tourism. The first half of the year shows almost a sixfold increase from the same period a year earlier, totaling 5,397.3 million euros.

This rise is driven by imports, which grew by 40.7 percent in the period, marking a record high of 222,882 million euros. Exports meanwhile climbed by 24.8 percent to 190,919 million euros, also an all-time high for the period. The coverage ratio, the measure of exports relative to imports, stood at 85.7 percent.

Behind the sharp growth in the foreign trade deficit lies a stronger energy gap, with the energy deficit alone reaching 25,894 million euros. The non-energy balance showed a deficit of 6,069.4 million euros.

Xiana Méndez, the Minister of State for Trade, stated that Spain’s foreign trade continues to display strong momentum, outperforming most neighboring countries. She noted the June export performance across all sectors as showing very positive behavior.

In her remarks, imports continued to rise, reflecting a recovery in domestic demand and the role of energy products. The rise in product prices, heavily influenced by energy costs, remains the main driver of the deficit. Méndez emphasized that the trade deficit remains at levels similar to previous months.

Trade data show that the annual growth rate of Spanish exports in the first half of the year (+24.8 percent) outpaced the EU-27 average (21.8 percent) and the euro area (22.3 percent). It also exceeded performance in France (20.1 percent), the United Kingdom (16.1 percent), Germany (13.3 percent), and Italy (22.4 percent). Outside Europe, sales to the United States rose by 20.3 percent, while gains to China stood at 13.2 percent and to Japan at 15.2 percent.

In terms of volume, exports advanced by 6.6 percent, with unit value indices indicating a 17.1 percent price uplift. Overall price levels rose by 19.5 percent as imports increased by 17.7 percent.

Chemicals, energy and semi-finished products

The leading positive contributors to the annual rate of change in the first half of 2022 were chemical products, energy items, non-chemical semi-finished goods and the food, beverage and tobacco sector. No sector contributed negatively.

Exports to the European Union accounted for 62.4 percent of the total and rose 26.1 percent in the first six months. Sales to the euro area, representing 54.8 percent of the total, increased by 25.4 percent, while exports to the rest of the EU rose 31.3 percent.

Sales to third destinations comprised 37.6 percent of the total and grew by 22.8 percent during the period. Regions outside Europe showed notable gains: Latin America up 35 percent, North America up 30.3 percent, the Middle East up 24.3 percent, Africa up 22 percent, and Asia up 2.6 percent excluding the Middle East.

Among the autonomous communities, the Canary Islands, the Balearic Islands and the Community of Madrid posted the strongest export growth at 44.5 percent.

June data

In June alone, the trade deficit expanded to 5,394 million euros as exports rose 26.6 percent to 34,949 million and imports surged 41.1 percent to 40,343 million compared with the same month of the previous year.

These results reflect a broader pattern of sustained energy-driven price pressures and a continuing recovery in domestic demand, with energy products playing a central role in shaping the balance of trade for the period.

Analysts point out that the ongoing strength of exports in the European Union mirrors a shared rebound in global demand, while the energy market remains a critical swing factor for both imports and the trade balance.