Spain narrows official trade deficit as imports slump

A slump in imports to recession-hit Spain helped to narrow the trade deficit by more than a third in the year to September, government data showed Wednesday. Imports fell by 7.4 percent to 20.95 billion euros ($27 billion) in the year to September while exports edged up 0.5 percent to 17.87 billion euros, an Economy Ministry report showed. As a result, Spain trimmed the overall trade deficit by 36.4 percent to 3.085 billion euros. With domestic consumption in the dumps, Spain is counting on exports, including its tourism and agricultural industries, as key engine during a recession that is expected to last through 2013. Spain's government has forecast an economic contraction this year of 1.5 percent. For 2013, Madrid tips an economic slump of 0.5 percent, far more optimistic than most private forecasts centred on a 1.5-percent drop in gross domestic product.