France hit by record trade deficit despite economic recovery
Containers in the port of Le Havre in France in 2021. AFP - SAMEER AL-DOUMY
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France announced on Tuesday the worst trade deficit in its history, in 2021, due to high energy prices but also massive imports of goods against a backdrop of strong economic recovery and deindustrialization of the country.
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In 2021, the deficit widened to 84.7 billion euros, French customs reported.
A figure significantly higher than the previous record of 2011, which was 75 billion.
The balance of trade is weighed down mainly "
by energy, and to a lesser extent, by manufactured products
", specify the customs in their press release.
The worsening of the deficit is explained "
by a more marked rebound in imports
(+18.8% after -13% in 2020) than in exports (+17% after -15.8%)", explains this same source.
►Also read: France's trade deficit widened sharply in 2020
But the government assures that all is not gloomy in France's foreign trade.
“
There are also positive points, especially on the balance of payments, that is to say when we integrate the services, which are doing very well
,” said Economy Minister Bruno Le on Tuesday on France Inter. Mayor.
The Banque de France reported a current account deficit in 2021 at 25.8 billion euros, or 1% of gross domestic product (GDP).
This figure certainly represents an improvement compared to 2020 (-43.7 billion) but also a deterioration compared to 2019, when the current account deficit was still limited to 7.1 billion.
The energy bill in question
Foreign Trade Minister Franck Riester said during a press briefing that “
it is important to look at the full picture of our commercial activity
” pointing in particular to a “
record surplus in services, at 36.2 billion euros
” .
“
With regard to the balance of goods, the deterioration is mainly due to the increase in the energy bill of 17.9 billion euros
”, he further indicated.
In addition, “
strong export sectors are still below their 2019 level
”, such as aeronautics which has only returned to 57% of its level before the health crisis, points out the minister.
►Also read: Soaring energy prices: what solutions?
Finally, the deficit is explained by the strength of the recovery, while the French economy recorded a growth of 7% last year, which "
affected the imports of consumer goods, industrial tools produced abroad
", according to Franck Riester.
France's trade deficit could also continue to widen in 2022. "
We believe that the impact of energy prices in 2022 will be just as heavy or even heavier than in 2021
," explained Minister of Foreign Trade.
(
With
AFP)
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