| Actual | Previous | Revised | |
| Balance | €-5.640B | €-6.864B | €-6.414B |
Highlights
The trade deficit contracted to minus 5.640 billion euros in April compared to minus 6.414 billion in March, and a 7.063 billion deficit in April of last year.
Exports expanded 3.1 percent to 54.585 billion in April, while imports rose 1.5 percent to 60.225 billion, flipping the script from the previous month when exports rose 1.2 percent, outpaced by a 3.5 percent increase in imports.
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.