| Actual | Previous | Revised | |
| Balance | €-4.843B | €-4.167B | €-4.036B |
Highlights
The trade deficit deepened in December, expanding to minus 4.843 billion euros from a revised minus 4.036 billion in November.
Exports rose 1.7 percent over November to 53.062 billion, while imports of 57.905 billion where 3.0 percent higher in December than the previous month.
The trade report is short on details. Generally some insights can be gained looking at the US trade report which breaks out individual countries. However, with the delay of the US trade report for December, even that is not possible.
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.