MADRID, April 22 (Reuters) - Both Spanish imports and exports contracted by over a quarter in February causing the trade deficit to fall by 27.3 percent from a year earlier to 5.87 billion euros ($7.59 billion), Trade Ministry data showed on Wednesday.
Imports fell by 26 percent compared to February 2008 to 18.27 billion euros as Spanish consumption -- long supported by plentiful credit -- shrivels in a deep recession, the ministry said.
Imports of capital goods, a leading indicator of future economic growth, fell by 35.2 percent.
Exports fell by 25.4 percent to 12.4 billion euros.
While demand is collapsing in most of Spain's major markets, the country also faces problems from the relatively high value of the euro, especially as Spanish competitiveness was additionally eroded by years of higher inflation than the euro zone average.
Spain's trade deficit is the main component of its current account deficit, which hit 10 percent of gross domestic product during a decade-long construction boom, to a large degree financed by foreign private sector funding. (Reporting by Jason Webb)