Particle.news
Download on the App Store
4 ARTICLES
·
3mo ago

France's Trade Deficit Narrows to €81 Billion in 2024, But Challenges Persist

While the reduction marks progress from previous years, it stems primarily from declining imports rather than export growth, raising concerns about long-term economic resilience.

Le terminal de conteneurs Eurofos, à Fos-sur-Mer, le 23 juillet 2020.
AFP - Porte-conteneurs
Image

Overview

  • France's trade deficit in goods improved to €81 billion in 2024, down from €100 billion in 2023 and a record €162.6 billion in 2022, driven by a sharp drop in energy imports.
  • The reduction is attributed to a 4.5% decrease in imports, particularly in energy, while exports fell by 1.6%, reflecting a contraction in global trade activity.
  • Key export sectors like pharmaceuticals, perfumes, and cosmetics showed growth, while aerospace remained positive but slightly weakened due to production shifts abroad.
  • Government initiatives like the 'Osez l’export' plan aim to boost export competitiveness, with a target of 200,000 export-oriented businesses by 2030, up from 151,000 in 2024.
  • Tensions with major trade partners, including potential U.S. tariffs under Donald Trump, and reliance on import reductions rather than export growth, highlight structural vulnerabilities in France's trade balance.