Balance of Payments

Definition

A macroeconomic statistic that systematically summarizes the economic transactions conducted between residents of an economy and residents of the rest of the world over a given period. It includes the accounts of goods and services, primary income, secondary income, capital, and the financial account.

Further information

The Balance of Payments (BoP) together with the International Investment Position (IIP) form the international accounts. These accounts provide an integrated framework for analyzing the economic relationships of, generally, a country with the rest of the world. This framework presents a sequence of accounts summarized in the following chart.

Structure of international accounts

As the chart illustrates, changes in the IIP between two periods are explained by the transactions recorded in the financial account of the BoP and by other changes in assets and liabilities (other flows)

Spain’s Balance of Payments is published monthly and quarterly. The difference between the two lies in the fact that the former requires estimates for those items for which data is not yet available.

A bit of history

Spain’s Balance of Payments began to be systematically published in 1954 by the Secretaría de Estado de Comercio, until 1991. In 1992, the Banco de España took over, as the full liberalization of foreign operations required the search for new data sources for its preparation. The Banco de España continues to compile the Balance of Payments to this day.

Since its initial publication, the compilation of Spain’s Balance of Payments has adhered to the principles and recommendations of the International Monetary Fund’s manuals. This ensures the quality of the estimates as well as their international comparability.

The Balance of Payments and the International Investment Position. Methodological Note.

Los activos del Banco de España frente al Eurosistema y el tratamiento de los billetes en euros en la BP y en la PII.