The trade surplus in the euro zone widened by more than expected in December to €5.7 billion, but a decline in exports and imports confirmed the fragility of the bloc's economic growth.
European Union statistics office Eurostat said today the trade surplus in the 12 nation single currency area grew to €74.4 billion in 2004 from €69.7 billion in 2003.
The euro zone's export-led recovery in the first half of 2004 lost steam in the second half due to a surge in oil prices and the euro's strong gains against other main currencies.
Eurostat said exports, seasonally adjusted, fell by 0.6 per cent in December and imports by 1.4 per cent.
"Eurozone exports continue to be pressurised by softer global growth compared to the first half of 2004 and the strength of the euro," said Mr Howard Archer of Global Insight.
The November surplus was revised to €2.7 billion from €2.9 billion. Eurostat said December exports were €97.9 billion and imports 92.2 billion.
Although the fall in exports was likely caused by the declining competitiveness of euro zone firms due to the strong euro, falling imports in the normally busy Christmas shopping period confirmed weak domestic demand.