Advertisement

French trade gap widens

AFP
AFP - [email protected]
French trade gap widens

An increase in energy imports due to a cold snap in February sent France's trade deficit jumping by nearly 15 percent in February to hit €6.4 billion ($8.4 billion), customs data showed on Friday.

Advertisement

"In February, the increase in imports is in part due to energy purchases connected to the cold snap, which caused the deficit to widen to €6.398 billions from €5.593 billion in January," said the French customs service in a statement.

In addition to the cold weather, three oil refineries were shut for maintenance, also causing a spurt in imports, the customs service noted.

Imports rose to €43.6 billion in February and exports to €37.2 billion.

Exports were helped by good sales of manufactured items, as well as agricultural commodities and military equipment, noted the customs service.

Major deliveries of satellites and a rebound in vehicle exports also helped the monthly figures.

The 12-month trade deficit came in at €70.051 billion.

France posted a record trade deficit in 2011 of €70.104 billion.

France has a big structural trade deficit which is a central concern to policymakers, and contrasts with a big surplus by the leading eurozone economy, Germany.

A trade surplus is important because it contributes to growth of gross domestic product, while a trade deficit tends to be a drag on the economy.

More

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also