Energy Prices Propel Trade Deficit in Eurozone and EU

The trade deficit in the EU and Eurozone significantly increased in July, reflecting the rise in energy import prices, according to Eurostat data.

In July, the EU exported goods worth 13 percent more than in the same period last year, as shown by seasonally adjusted data from the European statistical office, published on Thursday.

Imports Jumped 48 Percent

The balance showed an EU trade deficit with the world of 42.3 billion euros, the highest since the European statistical office began publishing reports. Last July, the Union recorded a surplus of 15.6 billion euros.

In July, the Eurozone increased its goods exports by 13 percent and imports by 44 percent.

This resulted in a record trade deficit with the world of 34 billion euros. Last July, the Eurozone recorded a surplus of 20.7 billion euros.

The deficit in both areas in July was a quarter higher than in June.

Expensive Energy

From January to July, goods exports from the EU increased by 17.2 percent, with a nearly identical percentage growth recorded in the Eurozone.

The value of goods imports surged by 49 percent in the EU and by 43 percent in the Eurozone.

Energy imports more than doubled, outpacing the increase in exports, and the Union concluded the first seven months with a trade deficit in energy nearly three times larger than in the same period last year.

Energy prices have risen sharply this year due to the Russian invasion of Ukraine and Western sanctions on Moscow.

In food trade, the EU recorded a surplus, despite a 30 percent jump in imports, which was double the increase in exports.

The US has become the main destination for European exports, which increased by about a quarter. Imports from the US surged even more, by 52.8 percent. The balance shows a European surplus in trade of 91.2 billion euros, slightly lower than in the first seven months of 2021.

Exports to Russia decreased by a third while imports increased by 70 percent. The balance shows a European trade deficit of 103.2 billion euros, three times larger than in the same period last year.