Spain's current account surplus expands, services income remains strong
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Spain's current account surplus expands, services income remains strong

Spain recorded a current account surplus of €10.3 billion in the fourth quarter of 2025, driven by a strong performance in services. The cumulative surplus for 2025 reached €49.4 billion, slightly below the previous year.

Services sector offsets widening goods deficit

Spain's current account surplus reached €10.3 billion in the fourth quarter of 2025, an increase from €9.2 billion in the same period of 2024.

This expansion occurred despite a widening deficit in goods, which stood at €12.1 billion in Q4 2025, compared to €10.7 billion a year prior.

The robust performance of the services sector was the primary driver, generating a surplus of €25.4 billion in Q4 2025, up from €22.0 billion in Q4 2024.

Both tourism and non-tourism services contributed significantly to this growth, with tourism and travel recording a surplus of €12.9 billion and non-tourism services reaching €12.5 billion.

For the full year 2025, the cumulative current account surplus was €49.4 billion, slightly lower than the €50.7 billion recorded in 2024.

The cumulative goods deficit for 2025 was €49.0 billion, while the services surplus reached €113.5 billion, highlighting the structural importance of services for Spain's external balance.

External liabilities continue to outstrip assets

Spain's net international investment position (IIP) stood at -€755.3 billion at the end of the fourth quarter of 2025, representing -44.8 percent of GDP.

This indicates that Spain's external liabilities continue to exceed its assets.

The position deteriorated slightly from -€746.4 billion at the end of Q3 2025.

While financial transactions in the fourth quarter contributed positively to the net IIP by €18.6 billion, other flows, primarily revaluations due to exchange rate and price changes, had a negative impact of -€27.5 billion.

For the full year 2025, cumulative transactions were a positive €68.1 billion, but these were largely offset by negative other flows amounting to -€170.5 billion.

This highlights the persistent challenge of managing external financial balances.

Structural strengths, persistent challenges

Spain's external accounts reveal a structural reliance on its robust services sector to offset a persistent goods trade deficit.

While the current account surplus provides a crucial short-term buffer, the deteriorating net international investment position signals a long-term challenge in managing external financial liabilities.

This dynamic suggests that despite strong export performance, Spain's overall external financial health requires continued monitoring and structural adjustments for more balanced growth.