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Higher Energy Prices Bring Italy Trade Deficit

Italy has recorded a trade deficit with the world in the first five months of this year due to a spike in energy import costs, while in Spain, the deficit was six times greater than in the same period of 2021, according to data.

The Italian trade balance showed a deficit of 12 billion euros in May, following a deficit of 3.63 billion euros in the previous month. In May of last year, Italy recorded a surplus in trade with the world of 5.63 billion euros.

The May energy trade balance shows a deficit of 8.26 billion euros, with more than double the exports but nearly triple the imports. The export of all goods and services increased by 29.5 percent compared to the same month last year, while imports surged by 48.8 percent.

Exports of products and goods to other EU countries rose by 32.6 percent, and to those outside the EU by 26.1 percent. On a monthly basis, exports in May increased by 4.8 percent, while imports rose by 0.3 percent, according to seasonally adjusted data.

Data also showed that import prices increased by 19.9 percent year-on-year, while they remained unchanged month-on-month.

From January to May, the balance shows a deficit of 10.8 billion euros, with a deficit in energy trade of 39 billion euros. In the first five months of last year, the balance showed a surplus of 23 billion euros. Total exports in the first five months of this year jumped by 22.6 percent, while imports increased by 44.1 percent.

Six Times Greater

The trade balance of Spain, on the other hand, showed a deficit of 26.57 billion euros in the first five months of this year, six times greater than in the same period last year.

The deficit in the first five months was greater than in the entire previous year, attributed to the spike in oil and gas prices, the Ministry of Industry announced on Monday. If energy imports and exports are not counted, the trade deficit amounted to 5.58 billion euros, the ministry emphasized.

Imports rose by 40.7 percent compared to the same period last year, reaching 182.54 billion euros, driven by demand for energy. Exports increased by 24.4 percent, to 155.97 billion euros, the ministry reported.

The value of energy imports in May was more than double that of the same period last year. Gas imports increased nearly fivefold, to 2.15 billion euros, while oil imports more than doubled, to 5.29 billion euros.