The Eurozone's non-seasonally adjusted trade balance fell to a deficit of €7.8 billion in May, far worse than the expected €1.6 billion deficit and a sharp reversal from the €1.2 billion deficit in April. The data, released by Eurostat, highlights the persistent drag from high energy import costs.
Energy imports drive record deficit
The trade deficit in energy alone reached €30.3 billion in May, up from €29.0 billion in April and well above the typical €18-20 billion range seen before geopolitical tensions escalated. This surge in energy imports pushed the overall trade gap to its widest since January 2023. Meanwhile, exports rose only 0.1% year-on-year, while imports jumped 10.0%, underscoring the imbalance.
Surpluses shrink across key sectors
The surplus in chemicals and related products fell to €18.4 billion in May from €20.5 billion in April, while the machinery and vehicles surplus dropped to €4.4 billion from €6.3 billion. These declines compounded the energy-driven deficit. On a seasonally adjusted basis, the trade deficit stood at €5.0 billion in May.
Year-to-date surplus evaporates
From January to May 2024, the cumulative trade surplus was just €3.3 billion, a dramatic collapse from the €78.7 billion surplus recorded in the same period last year. In May 2023, the Eurozone had posted a trade surplus of €15.0 billion, highlighting the speed of the deterioration.