Spain trade gap balloons in June

Spain’s trade deficit widened sharply to €3.59 billion in June 2025, compared with just €0.71 billion in the same month of the previous year, highlighting the growing imbalance between import demand and export growth. The deterioration came as imports surged at double-digit rates, while export growth slowed and energy shipments fell steeply.

Imports rose 10.9% year-on-year to €37.4 billion, reaching their highest level since late 2023. The increase was broad-based, led by strong demand for capital goods (+16.4%), chemical products (+21.7%) — driven in part by a sharp 55.4% rise in medicine imports — raw materials (+20.2%), automotive products (+11.4%), and both manufactured consumer goods (+13.5%) and durable consumer goods (+10.6%).

On a geographic basis, imports from the EU jumped 12.5%, while purchases from the United States (+21.5%) and China (+27.4%) climbed even more sharply, reflecting Spain’s dependence on extra-EU suppliers for high-value capital goods, chemicals, and intermediate products.

Exports, by contrast, posted a more modest 2.4% increase to €33.8 billion. Growth was supported by higher shipments of manufactured consumer goods (+11.2%), food, beverages, and tobacco (+9.1%), raw materials (+7.2%), and durable consumer goods (+7%). However, energy exports collapsed 21.5%, with natural gas down nearly 49.3%, dragging on the overall performance.

By destination, exports to the UK (+27.3%), Turkey (+21.2%), Switzerland (+7.1%), France (+6.5%), and Portugal (+5.7%) rose strongly. On the other hand, exports declined to key partners: Germany (-3.1%), Italy (-5.9%), and the U.S. (-6.4%), underscoring weaker demand in some of Spain’s largest markets.

The widening deficit reflects structural pressures: robust domestic demand continues to fuel imports of capital and consumer goods, while Spain’s export sector faces headwinds from falling energy shipments and softer demand in major European economies. The growing reliance on pharmaceuticals, chemicals, and machinery imports highlights both supply chain vulnerabilities and Spain’s heavy integration into EU and global production networks.

Looking ahead, the trajectory of Spain’s trade balance will depend on whether domestic consumption slows enough to curb import growth and whether external demand from Germany, Italy, and the U.S. recovers in the second half of 2025. A continued drag from energy exports could keep the trade gap elevated unless offset by stronger growth in manufactured goods and agri-food shipments.