Euro Area Trade Surplus Narrows More than Expected

The Euro Area trade surplus narrowed to €11.5 billion in February 2026 from €23.1 billion a year earlier, slightly below expectations of €11.7 billion. Exports fell 6.7% year on year to €232.4 billion, while imports declined 2.2% to €220.9 billion, reducing the surplus by €11.6 billion. The chemicals sector saw a sharp drop in its surplus to €16.2 billion from €30.4 billion, while machinery and vehicles also weakened, with the surplus falling to €10.2 billion from €14.2 billion. In contrast, the energy deficit improved to €20.0 billion from €25.2 billion. Over the first two months of 2026, the Euro Area posted a cumulative surplus of €10.6 billion, down from €21.8 billion in the same period last year.

Euro Area trade deficit widened to €1.9 billion in January 2026 from €1.4 billion a year earlier, missing market expectations for a €12.8 billion surplus. Exports declined 7.6% year on year to €215.3 billion while imports decreased 7.3% to €217.2 billion, increasing the overall deficit by €0.5 billion. The decline was driven primarily by a sharp decline in chemicals and related products, where the surplus narrowed from €24.6 billion in January 2025 to €16.7 billion in January 2026. The machinery and vehicles sector also weakened, with its surplus shrinking from €5.6 billion to €1.6 billion over the same period. In contrast, the energy sector showed notable improvement, as its deficit decreased from €26.2 billion to €19.2 billion.

Euro Area trade surplus narrowed to €12.6 billion in December 2025 from €13.9 billion a year earlier as imports grew faster than exports, pointing to softer external balance despite rising trade activity. Exports rose 3.4% year on year to €234.0 billion while imports increased 4.2% to €221.3 billion, reducing the overall surplus by €1.3 billion. The decline was driven mainly by smaller surpluses in chemicals (€16.5 bn vs €20.2 bn in December 2024), machinery and vehicles, other manufactured goods and raw materials. By contrast, the energy deficit improved, narrowing to €19.1 billion from €24.5 billion a year earlier. For the full year 2025, the bloc recorded a €164.6 billion surplus, down slightly from €168.9 billion in 2024, as exports rose 2.4% but imports increased faster at 2.7%.