PARIS: The French trade deficit, a critical problem for the recession-hit economy, worsened sharply in May, official data showed yesterday.
Although the data for a single month can vary considerably, the overall picture is grim for efforts by the left-wing government to boost industrial competitivity, growth and tax revenues.
The trade balance showed a deficit of ¤6.01bn ($7.7bn), rising above ¤6bn for the first time since June 2012. This outcome was ¤1.5bn worse than the deficit of ¤4.5bn in April. Exports fell particularly to areas outside the European Union, notably to Asia, the Middle East and Africa.
These areas represent emerging economies which are considered to be of vital importance to exporters in Europe.
The figures for May, published by the French customs service, were undermined by renewed weakness in the export of transportation equipment, and notably aircraft and aerospace equipment.
Exports of Airbus aircraft are a huge positive factor in the trade balance, and Airbus took firm orders totalling $39.3bn at the Paris Air Show two weeks ago.
But in terms of money earned by exports in May, the customs service said: “After two months at a very high level, deliveries of products by the aerospace and ship sectors fell back.”
Overall exports totalled ¤36.1bn from ¤37.7bn in April. Imports totalled ¤42.1bn. Big factors were imports of pharmaceutical products from Ireland, of mobile phones from China and a rise of the cost of energy imports. A trade deficit can be a drag on growth in an economy while a surplus boosts output, and France has been running a huge structural deficit for years. AFP
