RegStream

Communication Department

STATISTICAL PRESS RELEASE Madrid, March 24, 2023

International Investment Position and Balance of Payments The international investment position stood at -60. 5% of GDP in the fourth quarter of 2022, compared to -59. 1% in the previous quarter

- Gross external debt was 2. €332 billion (mm), or 175. 7% of GDP1,

slightly less than 2. 336 of the previous quarter (179. 5% of GDP).

- In cumulative terms of four quarters, in 2022 the financing capacity stood at

19. 7 billion (1. 5% of GDP), down from 22. 4 billion in 2021 (1. 9% of GDP).

In the fourth quarter of 2022, Spain's net international investment position 2 slightly widened its debit balance, registering an amount of 802. 4 billion (-60. 5% of GDP), compared to 769. 1

1 GDP figures are those published by the INE on the day of the year.

2 International investment position reflects the value and the balance of an economy's financial assets and liabilities vis-à-vis the rest of the world.

1

-120%-100%-80%-60%-40%-20%0%20%10111213141516171819202122 DIRECT INVESTMENT (EXCL. (BE) PORTFOLIO INVESTMENT (EXCL. (BE) FINANCIAL DERIVATIVES (EXCL. (BE) OTHER INVESTMENT (EXCL. BE) BANK OF SPAIN NET IP INTERNATIONAL INVESTMENT POSITION NETAPor functional category% of GDP

mm of the previous quarter (-59. 1% of GDP) and decreased compared to 862. 6 mm in the fourth quarter of 2021 (-71. 5% of GDP).

Financing capacity, measured by the combined balance of current and capital accounts, was 12. 2 billion in the fourth quarter of 2022 (10. 4 billion in the same quarter of the previous year). In cumulative terms over four quarters, financing capacity reached 19. 7 billion (1. 5% of GDP), lower than the 22. 4 billion accumulated in 2021 (1. 9% of GDP).

The net IIP debit balance, excluding the Bank of Spain 3, widened in the fourth quarter of 2022 to 555. 7 billion, from 539. 5 billion in the previous quarter. This change was mainly due to exchange rates4 (-36. 4 mm, with a negative impact on both assets and liabilities, as a result of the depreciation of the dollar), and to a lesser extent to other changes in volume (-1. 1 mm), which were only partially offset by transactions (+17. 8 mm, positive in net and greater in assets than liabilities) and by the effect of prices (+3. 6 mm).

3 Since the creation of the Economic and Monetary Union (EMU), in order to facilitate the economic analysis of the international accounts, it has been considered necessary to present the financial account data of the balance of payments and the international investment policy, separating the assets and liabilities of the Banco de España. For further information see section 3. 2 of the Balance of Payments and International Investment Position of Spain (https://www. bde. es/webbde/en/estadis/info est/htmls/no tamet/notametBpPii. pdf).

4 A breakdown of flows by functional category broken down into price variations, exchange rate changes and other fluctuations in turnover is available in http://app. bde. en/bie_www/? Language=EN&COFFLOW;=UEX_SCE012

2

-8%-6%-4%-2%0%2%4%6%8%10111213141516171819202122 CAPITAL ACCOUNT SECONDARY INCOME PRIMARY INCOME NON-TOURISM SERVICES TOURISM AND TRAVEL GOODS CAPACITY(+)/ NEED(-) FOR FINANCING CAPACITY (+) / NEED(-) FOR FINANCING OF THE NATIONCifras accumulated of the last 4 quarters% of GDP

By functional category, direct investment (which includes positions between companies of the same group) reduced its balance to -225. 4 billion in the fourth quarter of 2022 (-211. 4 billion in the third quarter of 2022), mainly due to the negative effect of the exchange rate (-24. 2 billion, much higher in assets than in liabilities), which exceeded the positive of transactions (+7. 7 mm) and prices (+3. 3 mm). Portfolio investment (corresponding to investments in marketable securities other than direct investment) recorded a balance of -308. 7 billion in the fourth quarter of 2022 (-303. 1 billion in the third quarter of 2022). This development was due to the negative contribution of the other flows (fornegative impact of the exchange rate and by a greater increase in prices in the case of liabilities than in the case of assets). Other investment (which mostly includes loans and deposits) slightly increased its debit balance to 22. 7 billion from 21. 5 billion in the previous quarter, again due to a negative effect on exchange rates (only partially offset by positive transactions).

The Bank of Spain's net balance vis-à-vis abroad stood at -246. 7 billion in the fourth quarter of 2022 (-229. 6 billion in the previous quarter).

By sector, excluding the Bank of Spain, public administrations improved their net international investment position, presenting a balance of -525. 8 billion in the fourth quarter of 2022, compared to -554. 2 billion in the third quarter of 2022. Monetary financial institutions decreased their credit balance to 23. 5 billion from 44. 1 billion, while the debit balance of the other resident sectors widened in the same period to -53. 4 billion from -29. 4 billion.

3

-750-700-650-600-550-500-40-30-20-10010203040506003 /202206/202209/202212/2022 TRANSACTIONS CHANGE IN EXCHANGE RATES CHANGE IN PRICES OTHER CHANGES IN VOLUME CHANGE IN PII NET PII (RIGHT AXIS) billion€billionCHANGES IN NET PII (EXCLUDING BE) BY TYPE OF FLOW

Spain's gross external debt 5 stood at 2. 332 billion in the fourth quarter of 2022 (175. 7% of GDP), lower than 2. 336 recorded in the previous quarter (179. 5% of GDP), and at 2. 334 billion in the fourth quarter of 2021 (193. 4% of GDP). The ratio in terms of GDP therefore continued to decline, following the trend in 2021, although it is still higher than the level of 2019 (169. 8% of GDP).

Excluding the Bank of Spain and the debt recorded between companies with a direct investment ratio, the greatest variation in debt was concentrated in general government (with their debit balance going from 622 billion to 594 mm), while monetary financial institutions and other resident sectors increased their debt (from 526 billion to 546 billion in the first case). and from 302 mm to 304 mm in the second).

5 Gross external debt is made up of the financial instruments included in the liabilities of the international investment policy with the exception of equity (equity shares and after equity participation, and participation in investment funds) and financial derivatives.

4

-120%-100%-80%-60%-40%-20%0%20%10111213141516171819202122 OTHER RESIDENT SECTORS OTHER MONETARY FINANCIAL INSTITUTIONS PUBLIC ADMINISTRATIONS BANK OF SPAIN NET PIIINTERNATIONAL INVESTMENT POSITION NETAPor institutional sector% of GDP

-10%40%90%140%190%240%10111213141516171819202122 OTHER RESIDENT SECTORS OTHER MONETARY FINANCIAL INSTITUTIONS DIRECT INVESTMENT GENERAL GOVERNMENT BANK OF SPAIN GROSS DEBTEXTERNAL DEBT GROSS GROSS DEBTor institutional sector% of GDP

Breakdown of current and capital accounts

In the fourth quarter of 2022, the current account surplus was 7 billion, up from 5. 3 billion a year earlier. By component, the deficit of goods remained slightly above that recorded in the same quarter of the previous year (10. 9 billion compared to 10. 4 mm, with year-on-year growth rates of 18% for exports and 17% for imports). The services surplus widened to 18. 9 billion (from 14. 1 billion in the fourth quarter of 2021), due to the improvement in the tourism surplus (from 7. 2 billion to 10 billion, with a notable year-on-year growth in revenues and payments, of 41% and 47%, respectively) and for the rest of services (from 6. 9 billion to 9 billion). Primary income6 recorded a balance of 1. 6 billion in the fourth quarter of 2022 (3. 9 billion in the same quarter of 2021), while the deficit of secondary income 7 was 2. 6 billion (from 2. 3 billion a year earlier). Finally, the capital account showed a surplus of 5. 2 mm, similar to the 5. 1 billion of a year earlier, highlighting the funds received from the European Union8.

For the year 2022 as a whole, the current account surplus fell to 7. 8 billion from 11. 5 billion in 2021. The increase in the deficit of goods (from 19. 7 billion to 58. 3 billion) and primary and secondary income (from 6. 4 billion to 10. 9 billion) was higher than that of the surplus of services (from 37. 6 billion to 77 mm). The capital account, meanwhile, increased its balance from 10. 9 billion in 2021 to 12 billion in 2022.

6 Primary income includes income from labour, income from investment, taxes on production and taxation and subsidies.

7 Secondary income includes personal transfers, tax revenues, social contributions and benefits, transfers related to insurance periods, international cooperation and miscellaneous transactions.

8 The flows linked to the Next Generatio programme in the EU have a significant impact on this development. For an explanation of how these are found in the Balance of Payments and the International Investment Position, the non-account published on the external statistics page https://www can be consulted. Bde. en/webbde/en/estadis/info est/htmls/no tamet/notaNGEU. . pdf

5

Additional information For more information on the conceptual framework, sources of information and methodology of the balance of payments and the international investment position, you can consult the Banco de España's foreign sector statistics website.

On the same website you can find more detailed statistical information, and with complete time series, of the balance of payments, international investment position and external debt, than that offered in this press release. You can also access the interactive tool BExplora, which allows the elaboration of graphs and flexible access to this information.

Novelties in the publication of data On the occasion of the entry into force of new requirements of international organizations, the nomenclature of the series has been adapted to identify those that refer to Special Purpose Entities (EFE) (formerly called Special Purpose Entities (EPE)). As a result of this change, for all series, an additional dimension called "entity type" is added at the end of the code that takes the values RSP (for series referred to EFE) or ALL (for the series referred to the total). This change has been implemented in both the downloadable and BIEST series for the monthly, quarterly and annual series.

Next publication of monthly data The advance of the balance of payments for the month of January 2023 will be published on March 31, 2023.

Next quarterly data release The balance of payments and international investment position for the first quarter of 2023 will be published on June 23, 2023. That publication shall review the balance of payments and international investment position for the fourth quarter of 2022, as well as the international investment position for the third quarter of 2022.

Additional annual details will be updated on April 14, 2023.

Reproduction permitted only s i s e cites source

More information: Tel. +34 91 338 50 44 / 6 0 97 / 5318 Fa x +34 91 338 520 3 www. Bde. en Correo el ectróni co: comuni cacion@bde. is

6

BALANCE OF PAYMENTS. CURRENT AND CAPITAL ACCOUNTS

billion euros

Current account

Goods

Services

Tourism and travel

Non-tourist services

Transport

Insurance, pensions and finance

Telecommunications, computing and information technology

Other business Rest (a) Primary income

Of which

Investment income

Secondary income (b)

Capital Account

Revenue

(1=2+3+10+11)

145,4

(2)

(3=4+5)

(4)

(5=6+7+8+9)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

87,2 32,8 10,7 22,1 4,6 1,5

3,8

8,5 3,7 17,6

12,1 7,8

6,0

2021 IV

Payments

140,1

97,6 18,7 3,5 15,2 3,6 1,2

2,5

5,9 2,1 13,7

13,0 10,1

1,0

CURRENT AND CAPITAL ACCOUNTS

(14=13+1)

151,5

141,1

5,3

-10,4 14,1 7,2 6,9 1,0 0,3

1,4

2,6 1,6 3,9

-0,9 -2,3

5,1

10,4

QUARTER DATA

Balances

Revenue

2022 IV

Payments

165,0

113,8 22,0 5,1 16,9 4,1 1,1

2,6

6,6 2,5 19,4

18,6 9,8

0,8

172,0

102,9 41,0 15,1 25,9 5,5 1,7

4,3

10,0 4,3 21,0

15,6 7,1

6,0

178,0

165,8

Balances

7,0

-10,9 18,9 10,0 9,0 1,3 0,6

1,7

3,4 1,9 1,6

-3,0 -2,6

5,2

12,2

billion euros

Current account

Goods

Services

Tourism and travel

Non-tourist services

Transport

Insurance, pensions and finance Telecommunications, information technology and information Other business Rest (a) Primary income

Of which

Investment income

Secondary income (b)

Capital Account

(1=2+3+10+11)

(2)

(3=4+5)

(4)

(5=6+7+8+9)

(6)

(7)

(8)

(9)

(10)

(11)

(12)

(13)

CURRENT AND CAPITAL ACCOUNTS

(14=13+1)

DATA ACCUMULATED SINCE THE FIRST

QUARTER OF THE YEAR

CUMULATIVE DATA FOR FOUR QUARTERS

2021 I-IV

Balances

2022 I-IV

2021 IV

Balances

2022 IV

Balances

11,5

-19,7 37,6 18,8 18,8 3,3 0,4

3,3

7,5 4,4 6,3

0,6 -12,7

10,9

22,4

7,8

-58,3 77,0 48,9 28,1 5,1 1,3

5,8

9,3 6,6 3,7

-1,8 -14,6

12,0

19,7

11,5

-19,7 37,6 18,8 18,8 3,3 0,4

3,3

7,5 4,4 6,3

0,6 -12,7

10,9

22,4

7,8

-58,3 77,0 48,9 28,1 5,1 1,3

5,8

9,3 6,6 3,7

-1,8 -14,6

12,0

19,7

SOURCE: Bank of Spain

Includes: transformation, repair, construction services, intellectual property charges, personal and recreational services, and government goods and services

b

Secondary income includes personal transfers, current taxes, social contributions and benefits, transfers related to insurance operations, current international cooperation and various others.

1

INTERNATIONAL INVESTMENT POSITION AND BALANCE OF PAYMENTS FINANCIAL ACCOUNT

POSITION AND FLOWS IN THE QUARTER

POSITION AND ACCUMULATED FLOWS IN THE YEAR

2022-III

2022-IV

2021- IV

2022 I-IV

Position at the end

of the period

Transactions in the period

Other flows in period (a)

Position at the end

Position at the end

of the period

of the period

Transactions in the period

Other flows in

Position at the end

The period

of the period

billion euros

NET INTERNATIONAL INVESTMENT POSITION

(1=3+8)

In terms of GDP (%)

Excluding Bank of Spain

Direct investment

Portfolio Investment Other Investment (b)

Financial derivatives

Bank of Spain

Reserves

Net position of the EB vis-à-vis the EUROSYSTEM

Other

(2)

(3=4+5+6+7)

(4=13-17)

(5=14-18)

(6=15-19)

(7)

(8=9+10+11)

(9)

(10)

(11)

-769,1

-59,1

-539,5

-211,4 -303,1 -21,5 -3,5 -229,6

90,2 -312,5 -7,3

ASSETS EXCLUDING THE BANK OF SPAIN(c)

(12=13+14+15)

2. 147,0

Direct investment

Portfolio investment

Other investment

(13)

(14)

(15)

LIABILITIES EXCLUDING THE BANK OF SPAIN(c)

(16=17+18+19)

Direct investment

Portfolio investment

Other investment

Pro-memory

Gross external debt

In terms of GDP (%)

Excluding the Banco de España Banco de España

(17)

(18)

(19)

(20=22+24)

(21) (22) (24)

766,4 765,6 615,0

2. 683,0

977,8 1. 068,7 636,5

2. 336,1 179,5 1. 722,0 614,1

6,4

-39,7

17,8

7,7 6,1 3,7 0,2 -11,3

1,4 -11,5 -1,3

28,0

10,9 3,8 13,2

10,4

3,2 -2,3 9,5

-34,0

-21,6 -11,7 -4,9 4,3 -5,7

-4,4 0,0 -1,3

-27,2

-21,1 6,8 -12,9

11,0

0,5 18,5 -8,0

16,5

-20,6

- - -

- - -

-802,4

-60,5

-555,7

-225,4 -308,7 -22,7 1,0

-246,7

87,2 -324,0 -9,9

2. 147,8

756,2 776,3 615,4

2. 704,5

981,5 1. 084,9 638,0

2. 332,1 175,7 1. 703,3 628,8

-862,6

-71,5

-608,1

-219,0 -406,6 25,7 -8,2 -254,5

81,4 -346,9 11,0

2. 089,4

711,3 826,9 551,3

2. 689,4

930,3 1. 233,5 525,6

2. 334,4 193,4 1. 697,6 636,8

23,7

36,6

-9,3

5,2 33,9 -51,5 3,1 33,0

4,4 22,9 5,6

145,0

41,2 46,1 57,7

157,4

36,0 12,2 109,1

61,8

-11,6 64,0 3,1 6,2 -25,2

1,4 0,0 -26,6

-86,7

3,6 -96,8 6,4

-142,3

15,2 -160,8

3,3

124,3

-126,6

- - -

- - -

-802,4

-60,5

-555,7

-225,4 -308,7 -22,7 1,0

-246,7

87,2 -324,0 -9,9

2. 147,8

756,2 776,3 615,4

2. 704,5

981,5 1. 084,9 638,0

2. 332,1 175,7 1. 703,3 628,8

Source: Bank of Spain to

Other flows include revaluations (either due to changes in exchange rates or changes in prices) and other changes in volume (including, inter alia, write-offs, unilateral loan cancellations or reclassifications) and statistical discrepancies between the international investment position and the financial account of the balance of payments.

It includes, mainly, loans, repos and deposits

b c No financial derivatives. Following international methodological recommendations and given the difficulty of correctly allocating this heading, especially its transactions, as assets or liabilities, it is presented

only in the nets at the top of the table

NET INVESTMENT POSITION. BREAKDOWN BY SECTOR

billion euros

NET INTERNATIONAL INVESTMENT POSITION

EXCLUDING THE BANK OF SPAIN

Public Administrations

Monetary Financial Institutions

Other Resident Sectors

Bank of Spain

Pro-memory:

Gross external debt

Direct investment (b)

Remainder:

Bank of Spain

Public Administrations

Monetary Financial Institutions

Other Resident Sectors

Assets

2. 663,7

2. 279,2

68,1

772,7

1. 438,4

384,5

2022 III Liabilities

3. 432,8

2. 818,7

622,3

728,6

1. 467,8

614,1

2. 336,1

272,2

614,1

622,2

301,9

Net

-769,1

-539,5

-554,2

44,1

-29,4

-229,6

Assets

2. 639,2

2. 257,0

67,8

760,1

1. 429,1

382,2

Net

-802,4

-555,7

-525,8

23,5

-53,4

-246,7

2022 IV Liabilities

3. 441,6

2. 812,6

593,6

736,5

1. 482,5

628,9

2. 332,1

260,2

628,8

593,6

545,5

304,0

SOURCE: Bank of Spain

a Excluding financial derivatives.

b Given the nature of direct investment, which is considered a more stable source of financing, it is presented separately from the rest for further analysis.