France’s trade deficit hit a new high in June

French foreign trade continues to deteriorate and breaks, month after month, sad records. In a statement released on Friday, customs indicate that the tricolor trade deficit continued to widen in June, reaching 13.3 billion euros. Unheard of, and enough to continue the worrying trend observed since the beginning of the year.

In detail, over the month, imports increased by 0.7 billion, amounting to 62.1 billion euros. Opposite, exports reached 48.8 billion euros, up 0.4 billion. The balance “declines again, but at a much less pronounced pace for two months“, specify the services of Bercy. The result is abysmal, and leads to a new trade deficit record, slightly higher than the previous one. By way of comparison, a year earlier, in June 2021, the deficit was half as high, at -5.79 billion euros.only“.

In May, the trade deficit in goods, established at 13.1 billion euros, had already erased the previous record in April, amounting to 12.4 billion euros. “The deterioration of the energy balance is once again the main cause of this situation“explained the customs, last month.

The 100 billion trade deficit mark should be crossed in 2022

Customs are also taking advantage of the publication to take a broader view, looking back on the quarter that has just ended. Between April and June inclusive, tricolor imports of goods increased sharply, by 6.9%, while exports were less dynamic – 3.5% – than over the previous three months. “Import growth in value terms is more than half driven by energy, mainly due to purchases of natural hydrocarbons, the price of which remains very high in a context of geopolitical tensions“, indicate in particular the Customs. As a result, the trade deficit widened again, reaching 39 billion euros, against 32 billion euros in the first three months of the year and 18.5 billion euros in the second quarter of 2021.

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The balance sheet for the semester is also worrying. Over the first six months of the year, the balance reached -71 billion euros, an amount twice as large as over the same period a year earlier. The deficit is carried, unsurprisingly, by energy products, the prices of which have increased considerably in recent months, we can see thanks to customs figures. “Cumulative over 12 rolling months, the trade balance continues to deteriorate and reaches –121.9billions of euros, finally report the customs officers.

This year, if the current trend continues, France should therefore exceed the symbolic bar of 100 billion euros in trade deficit. A level, again, never seen, while the balance of last year was already abysmal, at -84.7 billion euros. However, the executive wants to reverse the trend, while conceding that it will take time: “It will take ten years to return to a positive trade balance“, advanced the Minister of the Economy, Bruno Le Maire, early January.

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