The euro zone swung into a trade deficit in December as the euro remained strong, with exports flat and imports growing fast, the European Union's statistics office said today.
On a non-seasonally adjusted basis, the trade deficit of the then 13-country zone came to €4.2 billion, compared with a surplus of €2.4 billion in December 2006 and a revised €3.0 billion surplus in November 2007.
For the whole of 2007, the euro zone had a trade surplus of €28.3 billion compared with a deficit of 9.3 billion in 2006 as the bloc's energy bill fell somewhat while revenue from manufacturing goods increased, Eurostat said.
Exports were unchanged year-on-year in December, while imports rose 6.0 per cent.
Analysts say the strong euro and slowing domestic demand in some key euro zone markets such as the United States and Britain may be weighing increasingly on euro zone exporters.
On a seasonally adjusted basis, the euro zone trade deficit was €2.1 billion, compared with a surplus of €2.0 billion in November with exports falling 2.5 per cent against the previous month and imports rising 0.7 per cent.
More detailed data was not yet available, but January-October figures including newcomers Cyprus and Malta showed the euro zone had a €184.2 billion deficit in energy trade, compared with €208.1 billion in the same period of 2006.
The euro's strength against other currencies harms euro zone exports, economists say, but it shields the currency area against growing prices of oil, which is traded in US dollars.
The 13-nation area's surplus in manufactured goods increased to €249.9 billion in January-November, compared with the like period of 2006.
The trade deficit with China soared to €101.5 billion in the first 11 months of last year from €82.6 billion in the same period of 2006.