France’s shortfall widened sharply in May, denting hopes for a rebound in net trade over the next quarter, economists said. According to the French statistics office, the country’s external trade deficit increased from April’s -€5.2 billion ($6.09 billion) to reach -€6.0 billion, Web Financial reported. A 2.0% decline in exports month-on-month accounted for the bulk of the fall, although that was chiefly the result of weaker orders for transportation goods. May’s performance also followed a cumulative 3.9% jump in exports for March and April. Imports meanwhile dipped by 0.1% versus April. Geographically, the shortfall in trade with Asia and “other regions” grew larger, even as the deficit with the remainder of Europe narrowed a tad. Commenting on Friday’s figures, Claus Vistesen at Pantheon Macroeconomics said: “Net exports were a slightly drag on GDP growth in Q1, but today’s data do not provide much hope for a solid rebound in Q2, although we have to wait for the June report to get the full picture.”
