Source: Ministry of FInance Dept Of Economic Analyses

8 DECEMBER 2011

The trade gap moved down to € -6.2 billion in October month-on-month as imports dipped -0.3% to € 42.1 billion while exports +0.5% modest rise to € 35.8 billion translated the Euro area's chaotic debt crisis and impact on industrialist confidence since the banking sector's obligation to recapitalize arched over successive sovereign and financial institutions ratings downgrade. The oil bill +2% imports increase aggravated this component trade deficit although exports surged +1.5% but by less than half. 
The month milestones included 23 Airbus aircraft deliveries for over €1.4 billion.

Total exports to the European Union, the country's lead market stayed nearly stable or  +0.1% while imports abruptly fell -2.8%. Trade with the Euro area fared nearly equally with exports up +0.4% while imports dropped -3.5%. The trade deficit with each region improved, respectively to € -2.9 billion and to € -2.8 billion as imports from Germany plummeted -10.2% while exports surged +4.9%. Imports from Spain mirrored this trend and dipped -1.9% compared with exports +1.4% rebound. Exports to Italy performed inversely and dropped -3.2% equally to the UK -1.5% while imports from Italy climbed +2.3% and from the UK +1.7%. 

Trade with Asia, the country's third economic partner, recorded +1.4% exports increase while imports dipped -0.8% allowing for the trade deficit to move down to € -2 billion, the third consecutive decline.  Exports to the Americas bounced back +2.8% and imports +5.8% with a similar effect on the trade gap, while exports to Africa +1.7% rise, and imports +2.3% pushed down the trade surplus by 28% to € 33 million.

Commercial exchanges reflected feeble demand for consumer goods: chemical products, perfumes and cosmetics recorded a substantial -9.6% imports decline while exports fell -2.9%.  The pharmaceutical industry exports dropped -4.6% exports dip while imports rose +0.7%. By contrast, the food and agriculture industry exports grew +2% to € 3.6 billion while imports fell -0.3% to € 2.9 billion. Exports of transport equipment rose +4.8% due to each Airbus and the automobile industry while imports fell -4% allowing for the trade surplus to jump to € 770 million (from € 188 million the previous month).