adminBRUSSELS. — The eurozone boosted its trade surplus during the August holiday month, initial official data showed yesterday and crisis-hit countries did particularly well. Eurozone inflation meanwhile, a central factor for monetary policy by the European Central Bank, fell sharply in September to 1,1 percent from 1,3 percent in August.
A trade surplus is one of the main levers of growth in an economy.
The eurozone is heavily dependent on a huge trade surplus by Germany which more than compensates for a big structural deficit by the second biggest Eurozone economy, France.
For the eurozone countries in deep crisis and for others such as Italy and France struggling to raise their competitive performance and restructure their economies, improving the trade balance is of critical importance.
The latest data showed that the eurozone achieved a surplus in August of 7,1 billion euros, sharply up from 4.6 billion euros 12 months earlier.
For July, slightly revised data from the EU statistics agency, Eurostat showed a surplus of 18,0 billion euros.
On an adjusted basis, ironing out variations in the number of working days and other seasonal factors, exports rose by 1,0 percent and imports by 0,2 percent from the levels in July.
The wider European Union of 28 countries showed a deficit of 2,8 billion euros in contrast to a surplus of 10,3 billion euros in July.
At Berenberg Bank in London, senior economist Christan Schulz said “trade remained a key driver of the eurozone recovery this summer”. — AFP.
Online Reporter