Trade gain of the euro zone diminished in August as more expensive euro gave an import flow, which was compensated just slightly by growth in exports, as today’s official figures demonstrate.
Despite the fall of euro against the U.S. dollar from its top readings last month, it is anyway 12% above in 2017. ECB’s ideas to bring up inflation in the euro zone have been hobbled by less costly imports.
Eurostat data shows that trade gain slumped to 16.1 bln euros or $18.9 bln in the last month of summer, whereas in July it had been at 23.2 bln.
This year’s results are also down from the same month of 2016 with 17.5 bln euros. The lower results came as a consequence of soaring imports from non-euro zone countries, which rose 8.6% on the year, a seasonally unadjusted figure.
The August gain surpassed the exports growth of 6.8%, giving a decreased surplus for the euro zone. These readings are the worst for 2017, except for a brief January deficit.
The more expensive euro attaining in August close to 1.20 U.S. dollars, had its effect on lesser surplus, by lowering prices on imports. The inflation was limited by that too, thus creating impediments for the ECB willing to tighten monetary policy.