Eurozone trade deficit jumps to €7.8B, well above forecasts

The Eurozone trade deficit widened to €7.8 billion in May, far above the €1.6 billion deficit economists had forecast. Eurostat data showed exports rising just 0.1% from a year earlier, while imports surged 10.0%.

The January-to-May trade surplus narrowed to €3.3 billion, down sharply from €78.7 billion in the same period last year. The seasonally adjusted deficit for May stood at €5.0 billion.

Energy remains the biggest drag. The trade gap in the energy sector reached €30.3 billion, up from €29.0 billion in April and well above the €18-20 billion range common before the escalation in US-Iran tensions. The surplus in chemicals and related products fell to €18.4 billion from €20.5 billion. The machinery and vehicles surplus dropped to €4.4 billion from €6.3 billion.

The combined shortfall was the largest since January 2023.