France reported an increase in its trade deficit in June today, but expects an increase in exports in the coming months.
The June deficit rose to €1.19 billion from €1.15 billion in May, data from the customs office showed.
The deficit in the first six months of 2005 came in at €11.19 billion, compared with a deficit of €9.35 billion in the second half of 2004.
French trade minister Christine Lagarde said in a statement that France's high trade deficit was partly due to rising oil prices and weakness in its trade partners.
"Exports have reached a new record and should increase in the coming months but the trade deficit is high. This paradox results partly from the increase in (the cost of) our imports due to the sudden rise in the oil bill and also due to a certain sluggishness among our neighbours," she said.
In the first half of this year, French exports rose 2.6 per cent compared to the last six months of 2004, to reach €175.8 billion. Imports reached their highest half-year level at €187 billion.
The customs office said that imports, which were up 3.5 per cent, were mainly supported by domestic household demand.
Ms Lagarde said France's exports had to become more dynamic to create jobs in France and that the government would introduce new measures to encourage firms to export.