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Eurozone goods trade slips into deficit as imports surge
Eurostat data show imports rose 10.0 percent year over year in May while exports were nearly flat, driving a EUR 7.8 billion goods deficit.
Eurozone goods trade swung into a deficit in May as import costs rose sharply while exports remained broadly steady, according to Eurostat preliminary estimates cited by Action Forex. The euro area recorded a EUR 7.8 billion deficit with the rest of the world, reversing from a EUR 15.0 billion surplus a year earlier.
Exports edged up just 0.1 percent year over year to EUR 243.6 billion, while imports jumped 10.0 percent year over year to EUR 251.4 billion. The widening gap reflected import growth far outpacing any gains in shipments.
The broader European Union showed a similar deterioration, with a EUR 12.1 billion trade deficit in May versus a EUR 12.7 billion surplus in the same month last year. Extra-EU exports fell 1.1 percent year over year to EUR 215.7 billion, while imports increased 10.8 percent to EUR 227.8 billion.
Trade by partner also pointed to uneven regional momentum. EU exports to the United States fell 12.3 percent year over year, shrinking the EU surplus with its largest export market to EUR 7.9 billion from EUR 18.4 billion, while shipments to Switzerland and India rose 14.8 percent and 19.2 percent, respectively. Action Forex said the overall deterioration appeared driven more by higher import bills than by a broad collapse in exports.