The Balance of Payments and International Investment Position of Spain in 2021

Abstract

On balance of payments statistics, in 2021 Spain’s net lending amounted to 1.8% of GDP (1.2% in 2020). This increase mainly reflected the partial recovery in the travel surplus, thanks to the improvement in the epidemiological situation prompted by the headway in vaccination, and the widening of the capital account surplus, boosted by the credits corresponding to Next Generation EU. This countered the deterioration in the goods deficit, against the backdrop of the rising energy bill. Meanwhile, Spain’s negative net international investment position decreased significantly (to 70.4% of GDP, its lowest level since 2006), thanks to the positive financial transactions with the rest of the world and, to a greater degree, GDP growth and the increase in value of external financial assets. Conversely, Spain’s gross external debt reached another all-time high (€2,329 billion) due to the assumption of new liabilities, particularly by general government and the Banco de España. However, it fell as a percentage of GDP thanks to economic growth.