France trade deficit lifted in October by easing energy costs
In October 2023, France’s trade deficit, which is the difference between what the country imports and exports, decreased to €8.6 billion. This improvement was mainly because the cost of energy went down, specifically from €5.4 billion in September to €5 billion in October, thanks to lower amounts of energy being brought into the country.
Although imports increased by 0.6% to €58.3 billion, exports also went up by 1.2% to €49.7 billion. However, when looking at the average over the past three months, there was a small decrease in both exports and imports, according to the French Ministry of Economy and Finance.
Excluding the impact of energy, France’s trade deficit actually increased slightly from €5.4 billion in September to €5.6 billion in October. On a positive note, the services sector showed a surplus of €2 billion in October, although it was a bit lower than the €2.6 billion surplus in the previous month, as reported by the French Central Bank, Banque de France.
When considering the broader picture, which includes goods, services, income, and current transfers, France’s overall current account deficit inched up to €2.9 billion in October, a small rise from the €2.8 billion recorded in September.
Looking ahead, there are expectations for the current account deficit in France to grow further by the end of the year. The International Monetary Fund (IMF) projects an increase to $37.506 billion (€34.806 billion), equivalent to 1.2% of the Gross Domestic Product (GDP) in 2023.