Source: Ministry of Budget Dept of Stat & Economic Analyses

10 NOVEMBER 2011

The trade gap jumped to € -6.3 billion in September month-on-month dented by exports -6% decline to € 35.7 billion while imports slowed down -0.6% to € 42 billion leading the cumulative yearly deficit to a new high € -67.7 billion.

The month extreme volatility due to the Euro area's lingering Greek debt uncertainties froze investment decisions as weak USD data arched over global inter-bank dollar denominated liquidity crunch. Milestones nevertheless included 18 Airbus aircraft deliveries to Asia, mainly to South Korea, Singapore and Australia for an estimate € 1.3 billion and the sale of a satellite for € 147 million.  

Higher energy imports (natural hydro products, electricity and waste as well as refined oil products) from Saudi Arabia, Angola, Nigeria, Lithuania (+316%), Singapore, the Netherlands, the USA, the Near and Middle East accounted for the oil bill +21.5% leap to € 2.5 billion while inversely exports decreased by 1.9% to €1.1 billion. 

The overall exports dip reflected major trading partners economic halt as sales to the European Union decreased by 6.6%, the country's first export market followed by the Euro area's -8.9%. To Europe, excluding the Union, sales fell -3.9% to € 2.7 billion. Exports to Germany dived -15.8% to € 5.5 billion. Austerity measures in Spain  and hard times to come in Italy triggered lower demand translated by general strikes during the month: exports fell -10.4% in the former to € 2.6 billion and  -5.5% to € 3 billion to the latter, but increased +2.6% to the UK to over €2.3 billion due to the automobile industry, an exception among major partners. Exports to Portugal dipped -4.3%, to Ireland -12% and to Greece -1.8% but imports stayed positive from these two partners.

Exports to Asia, the country's fourth export market edged up a modest +0.2% but plummeted -19.3% to China and Hong Kong where the monthly Purchasing Managing Index (PMI) recorded its third consecutive slow down.  Exports to the Americas fell -4.1% (-5.3% to the USA) despite the Euro's monthly average USD 1.377 (compared with USD 1.433 in August) and plunged -10.5% to the Near and Middle East due to lesser exports of aerospace equipment although personal care products performed rather well to the united Arab Emirates, Saudi Arabia, and Iraq. By contrast, sales to Africa remained unchanged.

Five sectors retained their respective trade surpluses : agricultural products-fisheries and wood products totaled € 350 million and increased +14% compared wit the previous month as sales rose +1.5% while imports fell -2.3%.  The Food and Agriculture Industry products surplus stayed unchanged at € 594 million (€ 593 million in August) while transport equipment's dived -70% on the same period to € 619 million due to lesser Airbus aircraft sales and lesser automobile exports to the Union. Chemical products-perfumes and cosmetics surplus moved down to € 586 million or -14% compared with the previous month due to lesser exports, -2.4% mostly to Spain and Germany. Pharmaceutical products by contrast recorded +57% trade surplus increase to € 218 million thanks to demand from third countries as well as Germany, Italy, and Poland, compared with contractions in Belgium and Spain.  

Along the quarter, exports rose +4.6% and imports +2.4% as acquisitions from the Americas and Asia fell respectively -0.3% and -1.9%. Exports of transport equipment on the same quarterly period rose +3.8% and imports +2.8% but energy exports +12.1% remained dwarfed in value compared with imports.