France: Exports up 20% in the first nine months of the year

Good news in the economic sphere in these times of crisis, it is impossible to refuse. France’s exports of goods reached 439 billion euros in the first three quarters of 2022, up 20% year-over-year, according to a report released on Sunday by Business France. After 2021, when French merchandise exports “benefited from the recovery from the pandemic” and “began to grow again”, increasing by 17% to 501 billion euros, “the growth of merchandise exports accelerated” into early 2022, specifies Business France.

In addition, this growth was accompanied by “an increase in the number of exporters from 130,300 to 137,500,” the organization notes. This growth “continued into the first quarter of 2022 and reached 139,400, the highest level in 20 years,” he points out. During the first three quarters of 2022, the value of exports across all export sectors increased from their pre-crisis levels during the same period in 2019. The traditional French export sectors are the agri-food and agriculture sector (+28%). , textiles (+30%), pharmaceuticals, chemicals, perfumery and cosmetics (+24%) — in particular, “consolidate their level of exports,” the report says.

Growing trade deficit

However, high inflation linked to energy or other commodities reduces foreign trade performance, resulting in a historically bad trade deficit in 2022. Thus, the French government is betting on a negative balance of 156 billion euros, according to the documents of the financial bill for 2023.

Energy prices have indeed been rising for more than a year, thanks in part to the strong economic recovery following Covid-19-related lockdowns. Accelerated growth after the Russian invasion of Ukraine, which also put significant pressure on food prices.

The resulting deterioration in the energy balance is the justification that Customs has been putting forward for months to explain the sharp increase in France’s trade deficit. In September, the rolling 12-month deficit was already 149.9 billion euros, compared to 85 billion euros in 2021, already a historical deficit level.