Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

French trade deficit deepens  Join our daily free Newsletter

MENAFN - AFP - 05/07/2013
No. of Ratings : 0
Add to Mixx!



(MENAFN - AFP) The French trade deficit, a critical problem for the recession-hit economy, worsened sharply in May, official data showed on Friday.

Although the data for a single month can vary considerably, the overall picture is grim for efforts by the left-wing government to boost industrial competitivity, growth and tax revenues.

The trade balance showed a deficit of 6.01 billion euros (7.7 billion), rising above 6.0 billion euros for the first time since June 2012.

This outcome was 1.5 billion euros worse than the deficit of 4.5 billion euros in April.

Exports fell particularly to areas outside the European Union, notably to Asia, the Middle East and Africa.

These areas represent emerging economies which are considered to be of vital importance to exporters in Europe.

The figures for May, published by the French customs service, were undermined by renewed weakness in the export of transportation equipment, and notably aircraft and aerospace equipment.

Exports of Airbus aircraft are a huge positive factor in the trade balance, and Airbus took firm orders totalling 39.3 billion at the Paris Air Show two weeks ago.

But in terms of money earned by exports in May, the customs service said: "After two months at a very high level, deliveries of products by the aerospace and ship sectors fell back."

Overall exports totalled 36.1 billion euros from 37.7 billion euros in April, to show one of the worst monthly performances since 2011.

Imports totalled 42.1 billion euros. Big factors were imports of pharmaceutical products from Ireland, of mobile phones from China and a rise of the cost of energy imports.

A trade deficit can be a drag on growth in an economy while a surplus boosts output, and France has been running a huge structural deficit for years.

In the 12 months to the end of May, the deficit totalled 63.3 billion euros and in the whole of 2012 the deficit was 67.1 billion euros.

By contrast Germany, the other main and bigger economy in the eurozone, had a trade surplus of 17.7 billion euros in April after a surplus of 17.6 billion euros in March.

The French government regards the trade deficit as a vital problem for the economy and living standards, and has introduced some changes to the tax and labour laws to boost competitiveness.

But the European Commission has said that France must pursue deeper reforms to make its economy more efficient, in return for allowing the country an extra two years to reduce its budget overshooting to 3.0 percent of output.

On Wednesday the new head of the French employers' federation MEDEF, Pierre Gattaz, warned the government that his members could no longer accept increases in taxes and social charges "which burden our activities".

Analysts at Morgan Stanley bank warned this week that the French trade deficit was the main factor in an overall deficit on all regular payments in and out of the country, and that this could cause strains in financing national debt.

They said that the payments deficit was equivalent to 2.3 percent of gross domestic product in 2012, the worst figure for more than four decades.

"The driving force behind this downward trend has been the slump in the trade balance, stressing the competitiveness issues," they said.

But so far investors were "overlooking" the sharp worsening of France's external accounts which reflected "broad structural problems in the economy."

Savings within France would not be enough to finance the public debt and foreign investors could demand higher interest rates, they warned.

These factors "could cause a problem for financing government debt."

Meanwhile there is controversy in France within the government, and over calculations by the auditing office and the right-wing opposition, over the outlook for the severely strained public finances.


 


AFP




  MENA News Headlines
 Mar 3 2015 - Bahrain to launch USD22b development projectsMENAFN
(MENAFN) The government of Bahrain will be carrying out giant development projects with a value exceeding USD22 billion, Minister of Information said, KUNA reported.Bahrain is continuing with its ...

 Mar 3 2015 - KFAED finances USD13.47m loan to BelizeMENAFN
(MENAFN) Kuwait Fund for Arab Economic Development (KFAED) provided a USD 13.47 million loan to Belize to help in a road restoration project, a statement by the fund showed, KUNA reported.The ...

 Mar 3 2015 - FDI in Qatar posts USD30.65bMENAFN
(MENAFN) Foreign direct investments (FDI) inflow to Qatar registered USD30.65 billion at the end of 2012, a 1.2 percent growth from a year ago. Though the FDI has targeted various economic activities ...

 Mar 3 2015 - Oman's Raeco to invest USD395.75m for power expansionsMENAFN
(MENAFN) A total of USD395.75 million will be invested by Rural Areas Electricity Company (Raeco) in the next three years to raise the power generation capacity, transmission lines and distribution ...

 Mar 3 2015 - Kuwait Investment to cut US investmentMENAFN
(MENAFN) The Kuwait Investment Office (KIO), the London branch office of sovereign wealth fund Kuwait Investment Authority, is gradually reducing its overweight stance on US assets after keeping that ...

 Mar 3 2015 - Oman's NDC hits sales revenue of USD60.47m in 2014MENAFN
(MENAFN) National Detergent Co. (NDC), one of the leading FMCG companies in the sultanate, has posted total sales revenue of USD60.47 million for full-year 2014, compared with USD56.13 million a year ...

 Mar 3 2015 - 100 per cent rise in FDI expected this yearKhaleej Times
(MENAFN - Khaleej Times) Egypt expects 100 per cent increase in foreign direct investment, or FDI, during the current fiscal year compared to last year, Investment Minister Ashraf Salman said on ...

 Mar 3 2015 - Record 86 exhibitors participate in ME ElectricityKhaleej Times
(MENAFN - Khaleej Times) Shaikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and UAE Minister of Finance, inaugurated the 40th edition of Middle East Electricity (MEE) which takes place until ...

 Mar 3 2015 - Jebel Ali Free Zone opens service centre in Jafza SouthKhaleej Times
(MENAFN - Khaleej Times) Jebel Ali Free Zone, or Jafza, the flagship free zone operation of Dubai and the trade and logistics hub for the wider Middle East Region, has inaugurated its new integrated ...

 Mar 3 2015 - Dubai International passenger traffic grows 7.7 percent in JanuaryMENAFN
(MENAFN) Dubai International began new year on high note as the airport handled record 6.9 million passengers in January, indicating an increase of 7.7 percent due to holiday traffic and the annual ...

more...


 






Google

Electronic & Mobile Payment

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help