The trade gap in France narrowed to €3.9 billion in December 2024, a significant improvement from the revised €6.3 billion deficit in November and better than the expected €5.3 billion shortfall.
France trade gap smallest in four years
This marks the smallest trade deficit since November 2020, reflecting a positive shift in France’s external trade balance. Exports surged by 4% month-on-month, reaching €52.3 billion, driven by a strong performance in several key sectors. Transport equipment saw the largest growth, rising by 12.6%, followed by refined petroleum products and coke, which increased by 5.2%. Additionally, mechanical, electrical, electronic, and computer equipment grew by 5%, underscoring robust demand for France’s industrial products.
Export growth was broad-based
Export growth was broad-based, with increases across all major regions. Exports to the Middle East surged by 26.8%, reflecting growing demand in the region, while exports to America rose by 13.3%, signaling strong trade relations with North and South America. Exports to Asia also showed significant growth, up by 10.2%, suggesting solid demand from the Asian markets. Even within the European Union, exports increased slightly by 0.6%, and exports to Africa grew by 0.5%, highlighting consistent regional export growth despite varying economic conditions.
Import decrease by 0.8%
On the import side, France saw a 0.8% decline, with total imports falling to €56.2 billion. This was primarily driven by lower purchases of refined petroleum products and coke, which dropped by 9%, and natural hydrocarbons, which decreased by 8.5%. This reduction in energy imports is reflective of global energy price fluctuations and potentially lower domestic demand for these products. Imports also fell from several regions, including Asia (-4.3%), Africa (-1.1%), and the European Union (-0.7%), as France reduced its intake of various goods from these regions. However, imports from America rose by 4.2%, reflecting increased demand for certain American products, possibly driven by a stronger dollar or specific trade agreements.
Positive sign for economic balance
The overall narrowing of the trade deficit in December is a positive sign for France’s external economic balance and suggests that the country is managing to increase its exports effectively while moderating its import growth, particularly in energy products. The increase in exports across diverse regions highlights France’s competitive position in global markets, while the decrease in imports, especially from Asia and the EU, may signal a shift in trade dynamics or a response to internal economic conditions.
