May Trade Data for the Euro-zone Show Declines in Exports and Imports

Preliminary data on foreign trade of the Euro-zone for May show a decline in exports from 86,019 million euros in April to 83,831 million euros. Imports declined by a slightly larger amount, from 82,547 million euros in April to 80,149 million euros in May. As a result, the balance of trade increased by 209 million euros from 3,473 million euros in April to 3,682 million euros in May.

Comparisons with a year ago, however, show a substantial deterioration in the balance of trade. Exports have declined 8.59% from May of a year ago, while imports have also declined 3.30% over the same period, resulting in a decline in the balance of trade of 5,137 million euros over the year.. The 24% rise in the Euro over the past year has taken its toll on Euro Zone's exports. The rise in the euros has not, however, led to a surge in imports. Imports have actually declined by 3.30% over the past year as the slow down in economic activity has more than offset the increase in import demand that would ordinarily have been expected with the rise in the euro.