According to the latest customs data, The country’s trade deficit is 6.9 billion euros, mainly due to a slight decrease in exports of 0.3 billion euros and an increase in imports of 0.2 billion.. The decline darkens the optimism expressed by Olivier Bach, the former minister for foreign trade, who, last August, called for France to be strengthened as an “export power”.
The trade deficit is widening again
Before this latest slowdown, France had reported a steady improvement in its trade deficit over the past three months. The deficit narrowed significantly to 7.4 billion euros in November 2023, shows an improvement in the trade balance, thanks to an increase in exports and a decrease in imports. This positive trend was seen as an encouraging sign for the French economy, highlighting efforts to rebalance foreign trade.
Despite these lopsided improvements, January’s figures show the continuing challenges France faces on the foreign trade front. Exports have weakened at the beginning of the year and contributed to the increase in imports Persistence of trade deficit. Nevertheless, the improvement in the trade deficit over the year is worth noting, with a total of 94.6 billion euros and a current account balance that increased to 1 billion euros in January, reflecting ongoing adjustments in the French economy.
Towards strengthening of foreign trade
The Banque de France underlines the importance of reducing energy bills to improve the current account balance, which is a key factor in reducing the deficit. In addition, Trade in services recorded a positive performanceThe surplus increased from 2 to 3 billion euros in January, reflecting the strength of this sector in the French economy.
In this context, France finds itself at a crucial turning point to strengthen its position as an exporting nation. The fluctuations seen at the beginning of the year remind us of the importance of a balanced business strategy, able to adapt to market variations while consolidating promising sectors. Reductions in capital and intermediate goods, as well as improvements in the balance of consumer goods, indicate specific areas where additional efforts may be beneficial.
