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UPDATE 1-Spain's current account falls in Dec and 2008

Published 02/27/2009, 05:44 AM
Updated 02/27/2009, 05:48 AM

(Adds data including full year)

MADRID, Feb 27 (Reuters) - Spain's current account deficit fell sharply to 6.37 billion euros ($8.10 billion) in December and the whole-year deficit also fell as the economic crisis sapped the country's appetite for imports, Bank of Spain data showed on Friday.

Imports fell by 16.4 percent in December from a year earlier, helping slash the trade deficit which is the largest component of Spain's current account shortfall.

December current account data compared with a previously reported deficit of 8.54 billion euros in November and a 9.06 billion euro deficit in December 2007.

For all of 2008, Spain's current account deficit totalled 104.6 billion euros, down from 105.9 billion the previous year. Imports rose by 0.9 percent during all of 2008, the Bank of Spain said.

Spain slipped into recession in the second half of 2008, as the easy credit which had allowed its current account deficit to swell to about 10 percent of gross domestic product disappeared. (Reporting by Jason Webb; editing by Ben Harding/Ruth Pitchford)

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