Eurozone Posts Trade Surplus in August After Russian Imports Tumbled -October 16, 2023 at 05:17 am EDT

By Ed Frankl

The eurozone posted a trade surplus in August compared with a hefty deficit at the same point last year, with energy-import costs sinking after the bloc pivoted away from Russian oil-and-gas.

The bloc’s goods-trade balance, measuring the difference between exports to and imports from the rest of the world, showed a surplus of 6.7 billion euros ($7.04 billion), according to data from European Statistics body Eurostat released Friday.

In August 2022, the eurozone booked a trade deficit of EUR54.4 billion amid surging costs for energy imports in the aftermath of Russia’s invasion of Ukraine.

In the January-to-August period, data for the whole European Union showed energy imports sank 32% on year, while machinery-and-vehicle exports rose 12%. The EU’s trade deficit with Russia was EUR9.7 billion in August 2023, much lower than the EUR116.3 billion in August of last year.

Adjusted for seasonal swings, the euro area’s trade surplus was EUR11.9 billion in August compared with a EUR3.5 billion deficit in July.

Overall, exports from the 20-nation bloc rose 1.6% on month in August, on a seasonally adjusted basis, with those from Italy and the Netherlands rising by 5.9% and 6.4% respectively. However, in the eurozone’s largest economy, Germany, exports ticked down 0.7%, indicating a continuing sluggish manufacturing industry, while exports fell 1.7% and 3.1% in France and Spain respectively.

Meanwhile, imports tumbled 2.0% in August compared with July, also on an adjusted basis.

Write to Ed Frankl at [email protected]

(END) Dow Jones Newswires

10-16-23 0516ET