Euro zone trade surplus shrinks to €3 billion

The euro zone's trade surplus shrank to €3 billion in February from €6

The euro zone's trade surplus shrank to €3 billion in February from €6.9 billion a year earlier as imports grew 9 per cent while exports only grew by 4 percent, a sign the strong euro is making life tough for exporters, data showed today.

The European Union's statistics office said the trade deficit of the 25-member European Union in February widened to €6.8 billion from €3.8 billion under pressure from growing deficits in trade with China and Russia.

Still, the February trade surplus in the euro zone compared favourably with January's revised deficit of €1.7 billion. The total growth in imports by the EU 25 was 10 per cent in February while exports rose only 6 per cent.

The EU-25 recorded the biggest trade gap in energy, where imports exceeded exports by €14.2 billion in January 2005, up from €10.7 billion 12 months earlier.

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But the European Union exported more vechicles and machinery with the total value of the surplus in this area rising to €3.7 billion in January from €2.6 billion in January 2004.

Germany, Europe's biggest exporter, recorded a €13.1 billion trade surplus in January, followed by the Netherlands with a €2.4 billion surplus and Ireland's €2.3 billion.

Britain had the biggest trade deficit in January at €8.5 billion, followed by Spain with a €5.2 billion gap and Greece, France and Italy with €2.3 billion deficits each.