France trade deficit largest in eight months

France’s trade deficit widened slightly to €7.8 billion in May 2025, missing market expectations and up from a downwardly revised €7.7 billion in April. This marks the country’s largest trade gap since September 2024, signaling persistent external imbalances in a challenging global environment.

The widening deficit was driven primarily by a 0.3% month-over-month decline in exports, which fell to €48.9 billion. The drop was led by a sharp 6.8% contraction in sales of natural hydrocarbons, along with weaker demand for publishing and communication products (-2.8%) and other industrial goods (-2.1%).

Regionally, exports fell across most major markets, underscoring the broad-based nature of the external slowdown. Shipments to Asia tumbled by 14.1%, followed by notable declines in exports to the Americas (-6.4%), the Middle East (-2.5%), and Africa (-0.8%). In contrast, exports to the European Union provided a rare bright spot, rising 4.8% on stronger intra-bloc trade, potentially supported by improving industrial demand and seasonal factors.

On the import side, purchases dipped by 0.2% to €56.7 billion, reflecting weaker domestic demand and lower energy prices. The most pronounced declines were seen in imports of natural hydrocarbons (-3.3%), publishing and communication products (-3.1%), and other industrial products (-1.1%). From a regional perspective, imports fell from the Americas (-5.4%), the Middle East (-2%), and Asia (-0.1%), while increasing from Africa (+8.6%) and the EU (+1.3%), pointing to shifting supply chain dynamics and possibly the reorientation of sourcing patterns closer to home.

Overall, the data highlights the fragility of France’s external sector amid soft global trade conditions, energy price volatility, and uneven regional demand. Economists warn that unless export competitiveness improves, France may struggle to narrow its trade gap in the second half of the year—particularly if geopolitical tensions or supply disruptions escalate. Policymakers are expected to monitor the situation closely as part of broader efforts to boost industrial output and reduce reliance on energy imports.