French Trade Deficit Narrows in June

In June, France's trade deficit narrowed to €4.44 billion from a downward revised €5.7 billion gap in May. The deficit decline was driven by a sharp fall in imports which registered the weakest reading since December of 2010.

The decline in imports (-2.6 percent) was mainly driven by smaller oil and gas purchases as well as weaker demand for manufactured goods such as aeronautics, pharmaceuticals, electronic components, tobacco and clothing. Car purchases registered the only monthly rise. 

Exports rose slightly (+0.6 percent) driven by shipments of satellites and trains which were offset by lower sales of aircrafts. Shipments of military equipment also remain high while sales of other manufactured goods and agricultural products declined further.

Exports to the EU increased slightly due to rising deliveries to Germany and Italy. Outside the EU, sales to Africa and Asia continued to increase, but exports to the Middle East, America, Switzerland and Turkey fell.

French Trade Deficit Narrows in June

Nuno Fontes |
8/7/2013 9:40:48 AM