EU trade deficit drops to €2 bn in Q1 2023 amid lower energy prices
From Q4 2021 to Q3 2022, there has been a significant increase in non-EU trade, mainly due to rising commodity prices, especially imported energy, caused by Russia’s invasion of Ukraine. increase price pressure on these products. However, in the fourth quarter of 2022, exports increased only 1.5% quarter-on-quarter, while imports fell 7.7% due to falling prices of energy products, Eurostat said in a press release.
The European Union’s trade deficit narrowed to €2 billion in Q1 2023 due to falling energy prices, following deficits of €150 billion and €78 billion in Q3 and Q4 2022, respectively. January 2023 saw a decline in both exports at -1.4% and imports at -11.5%. The EU trade balance for energy products was -114 billion euros in the first quarter of 2023.
In the first quarter of 2023, both exports at -1.4% and imports at -11.5% decreased from the previous quarter, with a total value of 656 billion euros and 658 billion euros, respectively.
However, rising prices of energy products have increased the energy deficit to the point that the total surplus turns into a deficit. Over the past two quarters, falling energy prices have allowed the trade deficit to return to near-zero levels.
Although in Q1 2023 the trade balance for machinery and vehicles at €47 billion is still not close to the high value registered in Q1 2019 at €60 billion, the data shows the trade balance for these products nearly doubled from Q2 and Q3 2022 at €25 billion each quarter.
In the first three months of 2023, the EU trade balance for energy products was -114 billion euros and -9 billion euros for raw materials.
Fiber2Fashion (NB) News Desk