What does the return of the eurozone trade balance to a surplus mean?

The return of the EU trade balance to the positive zone in the second quarter indicates a trend towards recovery in the region, but also speaks of systemic problems in its economy, which are manifested in a decrease in demand from the population and business, according to experts interviewed by Vedomosti. The trade balance of the European Union in the second quarter of 2023 entered the positive zone for the first time since 2021, according to a press release from Eurostat on August 28. According to the service, this was due to the fact that the fall in the union’s imports (by 3.5% compared to the previous quarter) was deeper than the fall in exports (by 2%), resulting in a surplus of 1.23 billion euros. In April-June, EU countries exported goods worth a total of 636.83 billion euros, while imports amounted to 635.60 billion euros.

The main reason for the return of net exports to the positive zone in Eurostat is the decline in prices for energy and raw materials. Thus, EU energy imports decreased by 15.6% in Q2 2023 compared to Q1, while imports of raw materials fell by 10.9%. European exports showed a reduction in almost all sectors, except for engineering and transport (+2.5%).