| Actual | Previous | Revised | |
|---|---|---|---|
| Balance | €-5.9B | €-6.09B | €-6.0B |
Highlights
France's trade balance continued its negative trajectory, although narrowing to minus €5.9 billion in July. This shift was largely driven by a €0.6 billion drop in imports, which fell to €56.3 billion, while exports remained steady at €50.4 billion.
The energy sector continues to play a key role in stabilizing the trade balance, with a €0.4 billion improvement. Capital goods and consumer goods also contributed positively, with improvements of €0.2 billion and €0.1 billion, respectively. Notably, the consumer goods sector has been in surplus since November 2023, reflecting strong performance and demand for French products. However, the decline in intermediate commodities at minus 0.1 €billion signifies potential disruptions.
Overall, while France's trade deficit remains significant, these positive trends in energy and consumer goods suggest resilience, positioning the country to further stabilize its trade balance in the months ahead, leaving the RPI and RPI-P at 25 and 21 respectively, indicating that the French economy is outperforming market forecasts.
The energy sector continues to play a key role in stabilizing the trade balance, with a €0.4 billion improvement. Capital goods and consumer goods also contributed positively, with improvements of €0.2 billion and €0.1 billion, respectively. Notably, the consumer goods sector has been in surplus since November 2023, reflecting strong performance and demand for French products. However, the decline in intermediate commodities at minus 0.1 €billion signifies potential disruptions.
Overall, while France's trade deficit remains significant, these positive trends in energy and consumer goods suggest resilience, positioning the country to further stabilize its trade balance in the months ahead, leaving the RPI and RPI-P at 25 and 21 respectively, indicating that the French economy is outperforming market forecasts.
Definition
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.
Description
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.
