The trade deficit widens
July 8, 2010
The foreign trade deficit widened in May to 5.5 billion euros, according to figures released by Customs on Wednesday. "This is the worst result since October 2008," says Alberto Balboni, an economist at Xerfi. The consensus of analysts expected a decline of 4 billion trade deficit. The accumulated deficit amounted to 45.8 billion and euro over the past twelve months.
Exports fell to 29.8 billion euros, the absence of large aerospace contract causing a hole of 1.5 billion euros compared to the previous month. Engl year, they are still up 9.8%. At the same time, imports remained virtually unchanged at 35.3 billion euros, not dropping as 400 million euros.Year over year, while imports rose 12.3%.
Aerospace pharmacy crosshairs
"Exports are falling towards the European Union, it has been noted in the release of Customs. "Aviation is the key factor, but also affects the pharmacy." However, sales outside the EU are progressing well and continue to Asia and the Near and Middle East instant credit reports. "Asia is becoming the engine of global recovery in 2010, Alberto Balboni analysis. "Our exports to Africa rose by more than 22% over the period from January to May of last year."
Excluding aircraft and pharmaceuticals, "there is rather a strength of our sales to overseas," notes Nicolas Bouzou."It is for example interesting to note that sales of industrial machinery to emerging markets (Asia, Turkey, Romania …) are dynamic. (…) These are the emerging countries and the United States that can provide a breath of fresh air to our exports, although they represent only 30% of our trade. "
May's figures "suggest a lower contribution of trade to French growth in the second quarter, economists said BNP Paribas. In the first three months of the year, exports had greatly contributed to growth.
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