Economic Release
FR: Merchandise Trade
Date: April 8, 2025 01:45 AM CT
| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | €-7.87B | €-6.54B | €-6.49B |
Highlights
France's trade balance widened by 1.1 billion euros in February compared with January to 7.87 billion euros, on lower exports and rising imports. A total of 49.67 billion euros worth of goods were shipped, while 57.54 billion euros worth came into the country.
The contributions to the wider deficit were broad in nature. The manufacturing sector's gap expanded by an additional 0.9 billion euros, with the energy balance deteriorating a further 0.3 billion euros. Intermediate and consumer goods balances decayed by 0.4 billion and 0.3 billion euros, respectively with capital goods by 0.2 billion euros.
Compared to a year ago, exports fell 1.4 percent while imports were up 2.5 percent. The deficit stood at 5.75 billion euros in February 2024
The European Union has mounted a response to the tariffs imposed by the US, which is showing no signs of climbing down from its position. The first effects are most likely to come in the consumer goods sector.France's persistent trade deficit keep the RPI at minus 14 and the RPI-P at minus 10, showing economic activity lagging market expectations of the French economy.
The contributions to the wider deficit were broad in nature. The manufacturing sector's gap expanded by an additional 0.9 billion euros, with the energy balance deteriorating a further 0.3 billion euros. Intermediate and consumer goods balances decayed by 0.4 billion and 0.3 billion euros, respectively with capital goods by 0.2 billion euros.
Compared to a year ago, exports fell 1.4 percent while imports were up 2.5 percent. The deficit stood at 5.75 billion euros in February 2024
The European Union has mounted a response to the tariffs imposed by the US, which is showing no signs of climbing down from its position. The first effects are most likely to come in the consumer goods sector.France's persistent trade deficit keep the RPI at minus 14 and the RPI-P at minus 10, showing economic activity lagging market expectations of the French economy.
Definition
The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.
Description
Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets. Given the size of the French economy, the euro can be sensitive to changes in the trade balance. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.
