Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

French trade deficit hits record high in November

Published 01/07/2022, 03:55 AM
Updated 01/07/2022, 06:16 AM
© Reuters. FILE PHOTO: Cranes are seen at a closed construction site of extension buildings on the banks of the Seine River in Paris, during a lockdown imposed to slow the spread of the coronavirus disease (COVID-19) in Paris, France April 8, 2020.  REUTERS/Charles

PARIS (Reuters) -France posted a record trade deficit in November as spiralling energy prices drove up the import bill, official data showed on Friday.

The deficit surged to 9.727 billion euros ($10.99 billion)from 7.697 billion a month earlier with the value of imports reaching an all-time high of 52.5 billion euros versus 51.3 billion in October, the customs office said.

Like many countries around the world, France has been in the grip of an energy crisis since last year, when the lifting of COVID-19 restrictions put huge demands on depleted stocks of natural gas, sending prices of gas, related commodities and carbon emission permits to their highest in years.

Surging energy prices have added to underlying weakness in the French economy, whose trade balance has been in the red since 2004 as the country's industrial sector declined.

While President Emmanuel Macron's government has sought to reverse the trend, Finance Minister Bruno Le Maire said that improving the trade balance should be one of the major economic priorities for the next government after presidential elections in April.

"The weakness of our foreign trade reflects the weakness of our domestic economy. There is not great nation with a foreign (trade) balance that remains in deficit," Le Maire said.

In a case in point, other official data showed a 0.4% decline in French industrial output in November versus October, confounding a median forecast by economists for a 0.5% increase.

Meanwhile, consumer spending, at +0.8%, was a little higher than the +0.5% forecast in November, data published on Friday from the INSEE stats office showed.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

($1 = 0.8850 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.