The seasonally adjusted trade balance was in a €7.58 billion deficit in April, up sharply from March's marginally smaller revised €5.38 billion and a 6-month high.

The deterioration reflected a combination of weaker exports and stronger imports. The former declined 1.8 percent on the month, albeit to only a 2-month low, while the latter rose 2.2 percent to their highest level since August 2023. However, over the last three months, exports were up 3.2 percent versus a 2.6 percent increase in imports. Consequently, on a trend basis both sides of the balance sheet are expanding although the trade gap itself is only moving sideways.

For overall foreign trade, total net exports volumes added 0.2 percentage points to first quarter real GDP growth.

The merchandise trade balance measures the difference between imports and exports of goods. The level of the international trade balance, as well as changes in exports and imports, indicate trends in foreign trade and can offer a guide to an economy's competitiveness.

Changes in the level of imports and exports, along with the difference between the two (the trade balance) are a valuable gauge of economic trends here and abroad. While these trade figures can directly impact all financial markets, they primarily affect currency values in foreign exchange markets. Given the size of the French economy, the euro can be sensitive to changes in the trade balance. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of trade with major countries as well, so it can be instructive for investors who are interested in diversifying globally. For example, a trend of accelerating exports to a particular country might signal economic strength and investment opportunities in that country.