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France’s trade in goods deficit rose to €6.4 billion in February, up from €5.8bn in January, as well as above analyst expectations of €5.4bn, according to Banque de France.
This was mainly because of a drop in exports of transport equipment and agricultural products. Electrical, mechanical and computer equipment exports also fell.
On the other hand, the surplus on trade in services went up marginally in February, coming in at €4.1bn, up from €4bn in January.
The seasonally and working-day adjusted current account deficit touched €1.9bn in February, compared to a downwardly revised deficit of €1.3bn in January. This was the biggest current account deficit since last April.
France is currently dealing with a fiscal deficit and has launched measures such as spending cuts and tax increases in order to handle it. The country has a goal of decreasing its fiscal deficit to 5% of gross domestic product (GDP) by this year, before bringing it below the EU’s 3% limit by 2029.
However, France has revealed that it would not be implementing more spending cuts, in case a trade war, caused by the US’ tariffs against the EU, harms the French economy.
Related
French imports increased 2.4% on a monthly basis to €57.5bn in February, according to the Ministry of Economy and Finance. Imports were mainly boosted by rising purchases of communication and publishing products, which grew 13.8%.
Natural hydrocarbons imports increased 5.2%, whereas transport equipment exports grew 7.2%.
Imports from the Middle East into France advanced 15.7%, whereas imports from the EU rose 5.6%. Asian imports into France also inched up 1.1%, with American imports increasing 0.8% as well.
Exports from France stayed unchanged in February, at €49.7bn, the same as January. Exports of forestry, agricultural and fishing products rose 8.7%, whereas natural hydrocarbons exports inched up 3.1%.
However, transport equipment exports fell 4.9%, with refined petroleum products and coke exports also declining 2.2%.
Exports from France to the EU dropped 1.4%, with exports to the Middle East also plunging 7.3%. On the other hand, exports to Asia rose 4.4%, with exports to America also surging 8%, while African exports grew 3.3%.
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