In March 2025, the euro area posted a robust trade surplus of €36.8 billion, significantly higher than the €22.8 billion recorded a year earlier. This impressive expansion reflects a dynamic export performance, with goods exports surging by 13.6 percent to €279.8 billion, outpacing the 8.8 percent growth in imports.

A key driver of this trade performance was the chemicals and related products sector, which saw its surplus soar by €19.6 billion to €42.8 billion, marking it as the standout performer. Machinery and vehicles also contributed positively, with a modest €1.3 billion rise in surplus, reinforcing the region's industrial strength. However, not all sectors fared as well. Energy products experienced a slight deficit deterioration of €0.8 billion, while other manufactured goods, food and drink, and raw materials all recorded worsening balances.

Despite these sectoral declines, the euro area's overall trade position remains solid, supported by resilient demand for high-value industrial and chemical exports. This suggests a competitive edge in global markets amidst shifting economic conditions.

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. For the Eurozone, monthly data are available for trade in goods; statistics on services are released as part of the overall quarterly current account report. The headline trade data are not adjusted for seasonal factors and so should only be viewed in relation to the outturn a year ago. However, seasonally adjusted figures available elsewhere in the report do allow for monthly comparisons.

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 the value of the local currency dollar in the foreign exchange market.

Imports indicate demand for foreign goods and services. Exports show the demand for Eurozone goods in countries overseas. The euro can be particularly sensitive to changes in the balance since a trade deficit/surplus can create greater/reduced demand for foreign currencies. The bond market is also sensitive to the risk of importing inflation. This report gives a breakdown of EMU 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.