Source:Customs

7 FEBRUARY 2012

The trade gap surged to € -4.99 billion in December month-on-month, the first increase following two consecutive declines, pushed down by lesser exports, -2.7% to € 36 458 billion while imports, although subdued -0.4% to € 41 451 billion aggravated the deficit. In one year, the deficit swell to a cumulative €-69 592 billion inflated by imports +11.7% increase while exports underperformed and rose +8.6%. The oil bill jumped +31.4% in value with a deficit of €-13.5 billion or nearly twofold 2009 levels since Brent crude oil prices soared to USD 108.1 from USD 74.5. Best of class, five sectors in positive territory, remained in the black but their respective trade balances reflected fierce competition in retaining their market shares. As an import-led economy, acquisitions dented the trade balance since exports underperformed on the same yearly period, in part due to the unresolved Euro area debt crisis, the country‘s major export market behind the European Union, on top of a loss of competitiveness with the OECD 24 member countries as a result of a combination of the Euro's ever increasing exchange rate and a substantial unit labor cost spread from 2006 according to Banque de France data.

In December, transport equipment, a major export sector recorded a significant slow down, with sales down -3.9% despite the delivery of 28 Airbus aircrafts, following the previous month sustained momentum. The Food and agriculture industry exports edged down -0.3% but lesser imports for each group allowed their trade balance to remained in the black, respectively +33.5% and a more modest +1% on the same period. Exports of agricultural products-fisheries and wood plunged -10.5% and imports +3.1% surge shrank the group's surplus nearly two fold to € 291 million. Chemical products-perfumes and cosmetics followed a similar pattern with exports in decline by 1.3% while imports +2.9% increase impacted downwards the sector's balance to € 591 million (from €755 million in November). Exports of pharmaceutical products by contrast picked up +2.1% or nearly twofold imports +1.4% leading its trade balance to climb +9%.

Sectors in negative territory performed unevenly: exports of natural hydro products fell -1.7% while inversely imports +4.7% rise widened the group's deficit to €-4.5 billion. Exports of manufactured products decreased by 2.1% and imports by 1.7% taking the trade gap to worsen to €-2.2 billion. The oil bill deficit moved up to €-1.1 billion since imports, twofold in value compared with exports, in decline by 7.2%, solely fell -1%.

Exports of mechanical equipment-IT and electric-electronic goods fell -2.7% and imports -0.3%, but equally to the oil group, the trade deficit widened to €-1.7 billion due to higher imports in value. Other industrial products trade deficit stayed in the red as Intermediate Goods related products recorded overwhelmingly higher imports.