The balance of payments and international investment position of Spain in 2017

Abstract

According to the balance of payments (BoP) statistics, the Spanish economy once again became a net lender in 2017, despite the rise in oil prices and the strength of domestic demand. Factors that are foreseeably temporary, such as low interest rates, and other longterm factors, mainly relating to the increase in the number of exporting firms and the gains in competitiveness accumulated in recent years, contributed to this. The Spanish economy’s negative net International Investment Position (IIP), in terms of GDP, declined again for the third consecutive year (to 80.8%), since Spain’s lending position and the expansion of GDP offset the negative impact of valuation effects and other adjustments on the net IIP