The diversification of Spain’s export destinations
In 2024, Spain reduced its exports to the European Union and the United States, so it had to seek out opportunities in new markets in order to diversify and strengthen its trade relations. These new markets primarily included countries in ASEAN, Latin America and the Caribbean Islands, as well as Oceania.
In 2024, Spain defied the European trend by registering GDP growth of 3.2%, in contrast to the 0.7% recorded in the euro area as a whole. Spain’s foreign sector, although closely linked to the economies of the EU, played a key role in this growth, driven in particular by international trade in services, which contributed to a significant current account surplus.1 Exports of goods, on the other hand, showed a weaker performance and grew by just 0.1%,2 affected by weak demand from the main European economies. However, it is noteworthy that exports of goods managed to stay afloat while sales to the EU fell by 0.9%.3 Considering the euro area alone, the decline stood at –1.5%. This was made possible by the growth of exports to other, non-EU destinations, reflecting the economy’s valuable ability to access a range of customers when difficulties arise in certain markets.
Exports of goods to our two main trading partners, France and Germany, registered significant declines of 4% and 1.1%, respectively, and affected durable consumer goods and vehicles in particular. Belgium represents just 3% of our exports,4 yet it was the country that contributed the most to the decline (–0.7 pps), with a contraction of 18.1% that was led by semi-manufactured and capital goods in particular.
- 1. For an analysis of the foreign sector in 2024, see the Focus «Excellent records in the foreign sector in 2024» in the MR03/2025. And for an analysis of the weakness in the euro area, see the Brief Note «La economía vuelve a decepcionar en el cierre de año» published in January 2025 (content available in Spanish).
- 2. According to data from the Customs Department.
- 3. Transactions classified as «intra-community provisioning» and «deep-sea fishing in another EU state» are excluded throughout the article.
- 4. For comparison, France, Morocco and the US account for 15%, 3.3% and 4.7%, respectively, of total exports.
Conversely, exports to destinations with looser trade relations, such as Eastern European countries (Poland, Romania, the Czech Republic, Hungary, etc.), experienced growth driven by manufactured consumer goods and vehicles. Positive contributions also came from Portugal, Italy and, topping the list, Ireland (+0.3 pps).
Spain reduced its exports to the EU, but also those going to the US, so it had to seek out opportunities in new markets in order to diversify and strengthen its trade relations. Of particular note are the increases in trade with ASEAN countries (13.9%), Latin America and the Caribbean islands (+5.8%)5 and Oceania (+15.1%). In the case of Africa, the third most important region for Spanish exports, Spain intensified its exports, especially those destined for Morocco (4.7%) and Algeria.
- 5. Latin America excluding the countries included in Mercosur and Mexico.
The growth of exports to these markets has acted as a buffer amid the weakness of Spain’s European partners. The export sector has shown a valuable ability to diversify its destination markets in a context of weak demand from its main trading partners.
If we compare the distribution of Spanish exports by destination over time, we see significant changes in 2024. The proportion of exports destined for the EU has fallen by 0.6 pps from 61.1% to 60.5%, and those for the US by –0.2 pps, going from 4.9% to 4.7%. Exports to China have remained relatively stable, while the relative weight of Africa, non-EU European countries, Asia, Latin America and the Caribbean islands has increased.
Another aspect that reflects the expansion of the export base is the increase in the number of companies that export regularly (those that have exported more than 1,000 euros in the year in question and in each of the three immediately preceding years), which in 2024 grew by 4.8%, to 45,931 exporters. These firms were responsible for exports valued at 368.65 billion euros, which is 95.9% of the total and 3% more than the previous year.
It remains to be seen whether these latest changes in trade relations will be accentuated in the coming years, in an attempt to diversify destinations given the recently unleashed trade tensions, or whether Spanish exports will seek shelter in their main trading partner. Exports to the US could continue to see their relative weight decline, while exports to the EU – if the bloc’s recently improved outlook can be consolidated – could make up for some of the lost ground. Should European demand remain sluggish, then the search for new markets could be consolidated as a structural adjustment. However, proximity, historical ties and regulatory and logistical barriers make a rapid shift in orientation a difficult task, which is why we are more likely to see a gradual process conditioned by the evolution of the continent’s economic fortunes.
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