France's trade performance in March 2025 reflects a deepening structural imbalance. The trade deficit expanded to €6.25 billion despite a notable rise in exports. Exports increased by €2.77 billion to €52.6 billion, suggesting external demand is recovering. However, increased imports offset this gain, which climbed by €1.31 billion to €58.8 billion, highlighting continued reliance on foreign goods and input costs.

The energy trade deficit widened by €0.3 billion, driven by reduced energy exports and heightened import demand, possibly linked to volatile global energy prices. The deterioration in the balance of manufactured goods (minus €0.2 billion) and investment goods (minus €0.2 billion) signals challenges in industrial competitiveness and capital formation. In contrast, stable intermediate and consumer goods balances suggest steady domestic consumption and industrial supply chains.

Overall, while export momentum is encouraging, the faster pace of imports and weakening sectoral balances raise concerns about the sustainability of France's external accounts and the resilience of its production structure.

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.