Spain’s trade competitiveness relative to the eurozone

Spanish exports registered nominal growth of 40% between 2012 and 2021, the highest rate among the five benchmark economies. The data corresponding to the first three quarters of 2022 suggest that momentum has continued, with Spain ranking as the country with the second-highest export growth compared to the same period of 2019. Analysis of the cost-competitiveness data suggest that the Spanish export sector has been competitive on the cost side, both before and since the pandemic-induced crisis. Thus, the Spanish economy is capable of improving its internal cost competitiveness and transforming those gains into export growth. In addition to this, it is likely that some Spanish firms are positively affected by the current reorganization of globalization, leaning towards shorter and safer supply chains. Nevertheless, Spain’s export intensity remains below its weight as an economy within the universe of benchmark economies.