3 years of surpluses end: France posts trade deficit
After recording a trade surplus of €1.69 billion in 2003,
France more than canceled that out in December 2004 alone with a €1.89 billion deficit that brought the year-end figure to a total deficit of €7.8 billion.
Exports in December fell to €28.02 billion from €29.18 billion a month ago, while imports decreased slightly from €30.12 billion to €29.91 billion.
2004 exports, which rose 5.6% to €341 billion, were not enough to offset the strong increase in imports. The resulting deficit was
France's first after three straight years of surpluses.
The rise in energy and metal prices, as well as robust domestic
consumption, fueled the influx of imports.
The trade deficit is expected to continue in the near term because of weak exports and domestic
consumption that shows no signs of slowing down.
France's trade deficit with the rest of the Euro zone rose to €863 million in December from €702 million in November.