The Balance of Payments and International Investment Position of Spain in 2022

Rationale The balance of payments and international investment position (IIP) are important because of the information they provide on economic relations with the rest of the world, which affect the national economy. Their analysis is of even greater interest in the light of recent events, such as the war in Ukraine and its impact on energy prices. Takeaways •In 2022 the Spanish economy’s net lending fell, owing largely to the deterioration in the energy trade balance. The services balance performed favourably, particularly in the case of travel services, which returned to pre-pandemic levels. •The negative net IIP continued to correct in 2022, standing at 60.5% of GDP, the lowest level in 18 years, thanks to GDP growth, the positive amount of financial transactions with the rest of the world and positive valuation effects. •Spain’s outward foreign direct investment and inward foreign investment in Spain recovered their pre-pandemic levels, with a notably strong performance by the non-financial corporations sector.