Spanish payments deficit drops in February: central bank

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Spain's balance of payments deficit dropped to 6.57 billion euros (8.7 billion dollars) in February from 9.26 billion euros in the same year-ago period, the Bank of Spain said on Friday.

"This drop is mostly due to the drop in the trade deficit," it said in a statement.

Spain's trade deficit -- the gap by which a country's imports exceed its exports -- has dropped sharply since the country entered into recession at the end of 2008 following the collapse of a property bubble, mostly due to a decline in imports.

During the first two months of the year Spain's balance of payments deficit dropped to 13.1 billion euros from 15.4 billion euros in the same year-ago perdiod.

The balance of payments is a closely watched indicator of a nation's ability to pay its way in the world. It is important for the long-term confidence of investors and trading partners.


© 2010 AFP

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