MNI BRIEF: EZ August Trade Surplus Falls To 17-Month Low

The eurozone trade deficit declined to EUR11.1 billion in August, the lowest level since April of 2020, from EUR13.5 billion in July. Imports rose by 1.6% in August, far outpacing a 0.3% increase in exports. Over the year to date, total exports rose by 15.2% to EUR1.6 trillion on a non-seasonally-adjusted basis, while imports rose by 16.8% to EUR1.4 trillion, leaving the surplus at EUR126.9 billion, little changed from the same period of 2020.

However, that obscures a sharp drop in imports from the UK, which fell by 16.7% y/y on a non-seasonally-adjust basis over the first eight months of the year to EUR88.7 billion. The bilateral surplus ballooned to EUR110.0 billion from EUR92.6 billion in 2020.

Exports to China rose by a non-seasonally-adjusted 15.3% between January and August (over the same period of 2020), while imports rose by 15.2%, expanding the bilateral deficit with China to EUR138.7 billion to EUR120.4 billion in 2020.