All My Thoughts

The euro area has a trade deficit unexpectedly in May

July 16, 2010 – 10:05 am

The euro zone recorded a trade deficit in May, as imports increased more than exports, Eurostat said Friday.

The deficit amounted to 3.4 billion euros, with an export growth of 23% yoy surpassed by an increase of 30% of imports.

The trade surplus in April was revised to 300 million euros against 1.8 billion in the first estimate.In May 2009, the trade surplus was 2.2 billion euros.

Economists polled by Reuters had expected a trade surplus crude 1.5 billion euros.

The strong export growth attests to the growth of global demand in the euro area, while a jump in imports, a sign perhaps of a revival in domestic demand bodes well for global economic recovery.

Seasonally adjusted trade deficit was 3.0 billion, with export growth of 1.6% and import growth of 4.2% compared to April.

• The French trade deficit will break all records
• A trade deficit of 4.683 billion euros in September
• The contraction of the Spanish GDP in 2009 revised to 3.7%
• The BoE injects 75 billion pounds of cash
• The consumer prices down 0.1% in September