France's trade deficit narrows in December as Airbus deliveries boost exports

Data from the French Customs showed on Tuesday that France's trade deficit narrowed in December. Data showed France trade deficit fell to EUR 3.421 billion from EUR 4.37 billion in November and compared to EUR 3.612 billion a year ago.

French Customs data showed Airbus deliveries that were twice the usual rate boosted exports in December. Exports grew 4 percent after 5.4 percent gain in November, while imports rose 1.4 percent following 2.7 percent increase in the previous month.

For the year 2016, the trade deficit widened to EUR 48.1 billion from EUR 45 billion in 2015. Annual exports fell 0.6 percent versus 4.4 percent rise in 2015. Imports increased 2.4 percent after a 5.7 percent rise in the previous year.

Seperate data from the Bank of France showed Tuesday that French current account gap narrowed further at the end of the year. France's current account deficit fell to EUR 1.1 billion in December from EUR 2.8 billion in the previous month. The capital account surplus remained unchanged at 0.1 billion in December. However, the financial account surplus grew from EUR 11.2 billion to EUR 20.6 billion.

The goods trade deficit narrowed to EUR 0.9 billion in December from EUR 2.6 billion in November. Meanwhile, services trade balance turned to a surplus of EUR 0.1 billion from a balanced figure in the prior month.