Economy - France reduces its trade deficit by €6 billion

Since the beginning of 2024, France has been showing remarkable trade results. Its trade deficit has been decreasing consecutively over the months. Indeed, this performance is indicative of the strength of the French economy. Let’s discover what is accounted for by an increase in exports and a decline in imports.

French Economy: Increase in Exports and Decrease in Imports

First of all, French exports saw an increase of 100 million euros in February 2024! Reaching a total of 50.3 billion euros. Concurrently, imports decreased by 100 million euros, settling at 56.3 billion euros.

This favorable dynamic has allowed for a reduction in the trade deficit by 200 million euros over a month! Bringing it down to 6 billion euros. Furthermore, the deficit figure for January has been revised downwards from 6.9 billion euros to 6.2 billion euros. Thus, France chains together five months of successive improvements in its economic indicator, a noteworthy performance.

Lightening of the Energy Bill

Next, France’s energy bill was lightened by 100 million euros in February 2024, despite the balance of energy goods trade remaining largely in deficit, at 4 billion euros. This reduction in the energy bill has contributed to the decrease of the overall trade deficit. Moreover, the deficit on intermediate goods trade also receded by 100 million euros in February, to stand at 1.3 billion euros.

However, the balance of investment goods worsened by 100 million euros, reaching 3.1 billion euros. Despite this slight deterioration, the surplus recorded by France on consumer goods remained at 700 million euros in the economy, an unprecedented level since the 2000s.

In summary, the French economy displays remarkable trade performances in 2024. The reduction of the trade deficit, driven by an increase in exports and a decrease in imports, reflects the robustness of the French economy. This positive momentum is bolstered by a lightening of the energy bill, although the balance of energy goods trade remains in deficit. Thus, France continues its trajectory of economic recovery, offering promising prospects for the future.