France Posts Largest Trade Deficit in 15 Months

The French trade deficit widened to EUR 6.0 billion in May of 2018 from an upwardly revised 5.2 billion in April and way above market consensus of a EUR 5.1 billion shortfall. It was the largest trade gap since February 2017, as shipments fell faster than purchases.

Exports declined 2 percent month-over-month to EUR 40.5 billion in May 2018, reversing a 2.9 percent increase in April. Sales dropped mostly for aerospace products (-19.1 percent);works of art, technical documentation, publishing products (-13.7 percent); automotive products (-4.8 percent), and computer products, electronic and optical (-3.3 percent). Other decreases were also seen in industrial and agricultural machinery (-1.2 percent); wood, paper, cardboard (-1.1 percent); agricultural products (-0.7 percent), and electrical and household equipment (-0.2 percent).

Among major trading partners, shipments fell mostly to Germany (-0.4 percent); Italy (-0.1 percent) and the US (-1.0 percent) while increased to Spain (0.9 percent) and Belgium (0.2 percent).

Imports edged down 0.1 percent to EUR 46.5 billion, following a 2.8 percent growth in the previous month, dragged by slower purchases of aerospace products (-6.9 percent), mainly from the UK. Other significant losses were also recorded in ships, trains, and motorcycles (-2.5 percent); pharmaceutical products (-2.3 percent); natural hydrocarbons (-2.1 percent), and perfumes, cosmetics, cleaning products (-1.2 percent).

Among major trading partners, purchases declined primarily from Germany (-3.4 percent) and Italy (-0.6 percent) while they advanced from China (4.5 percent); Belgium (7.9 percent) and Spain (1.9 percent).

France Posts Largest Trade Deficit in 15 Months

Ministère de l'Économie et des Finances | Chusnul Ch Manan |
7/6/2018 11:07:40 AM