EU trade balance snaps deficit streak, swings to surplus in Q2 2023

29 Aug '23

1 min read

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The EU trade balance returned to a surplus level of €1 billion in Q2 2023 after six quarters of deficit, showing a recovery from a €155 billion deficit in Q3 2022, as per Eurostat.
The turnaround has been primarily attributed to a decline in energy prices.
Exports fell by 2 per cent, while imports saw a more significant reduction of 3.5 per cent.

The European Union's (EU) trade balance has shifted to a surplus in the second quarter (Q2) of 2023 after six consecutive quarters of deficit, according to the latest trade data by Eurostat. There was a small surplus of €1 billion, marking a drastic improvement from the €155 billion deficit registered in Q3 2022, which was the highest deficit level since 2019.

The change has been attributed to declining energy prices. Exports for the quarter saw a dip of 2 per cent, while imports declined by a more significant 3.5 per cent. A substantial 15.6 per cent drop in energy imports and a 10.9 per cent decline in raw material imports, compared to Q1 2023, contributed to the shift in trade dynamics.

While most export sectors faced declines, energy and raw materials experienced the most substantial decreases, plummeting 22.5 per cent and 9.3 per cent respectively. In terms of energy trade balance, the deficit improved from minus €115.3 billion in the first quarter to minus €100 billion in the second quarter of 2023, as per Eurostat.

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