Economy: the French trade deficit towards the milestone of 100 billion euros by 2023

Europe 1 with AFP 7:59 a.m., February 7, 2024

Will or will not cross the twelve figures for the second year in a row? The scale of the French trade deficit in goods for 2023 is to be revealed on Wednesday by Customs and is expected to be around 100 billion euros, the second highest level in history. The previous record only dates back to 2022 and the 164 billion euros deficit recorded on the trade balance, a widening at the time largely due to the explosion in energy prices in the wake of the Russian invasion in Ukraine .

A level higher than the deficits recorded for 20 years

“The drop in the price of oil and the return to normal of electricity exports and imports of intermediate goods” offered respite to French statistics last year, anticipates in a note Stéphane Colliac, economist for BNP Paribas, who expects an annual deficit of 101 billion euros. This level would nevertheless remain higher than the deficits recorded uninterruptedly since 2002, and represent the second largest in history.

“The trade deficit will remain significant in 2023, it will also probably remain significant in 2024”, conceded to AFP Laurent Saint-Martin, general director of Business France, an organization which supports French companies in their international projects , a few hours before the publication of the figures, expected Wednesday at 8:45 a.m. “The reversals in trade balances require enormous investments in production capacities at home and a more massive international projection,” he adds, highlighting French initiatives in terms of reindustrialization and incentives to 'establishment abroad by the government, which could bear fruit within ten years according to him.

The number of exporting companies will be scrutinized

As every year, the luxury, wine and spirits, cosmetics and aeronautics sectors should drive growth in French exports, just as tourism should help boost the balance of services. The number of exporting companies will also be scrutinized, at a time when the government wants to push them towards internationalization, to help boost French exports.