Euro zone trade surplus falls to €6.5 billion

The euro zone's trade surplus narrowed to €6

The euro zone's trade surplus narrowed to €6.5 billion in June as imports in the region increased, EU statistics agency Eurostat said today.

This compares with the previous year's surplus of €8.3 billion. New figures show imports into the 12-nation area rose 9 per cent while exports rose 7 per cent.

However, on a seasonally adjusted basis, exports fell 0.5 per cent in June from May, while imports rose 0.3 per cent for a trade surplus of €3.4 billion, down from €4.2 billion in May.

The trend of a shrinking trade surplus was also reflected in the first five months of the year with the unadjusted euro zone surplus shrinking to €17.3 billion from €41.1 billion in the same 2004 period as imports surged 10 per cent while exports only rose 5 per cent.

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The trade surplus in May was revised slightly upwards to €2.7 billion from €2.2 billion originally reported.

Reflecting the continued rise in crude oil prices, the bill for energy imports into the euro zone jumped 41 per cent in January-May from the same 2004 period, with the energy deficit rising to €71.1 billion from €48.6 billion last year.

Germany posted the largest surplus in the euro zone at €67 billion in the first five months of the year, helped by strong global demand for machinery and vehicles.