Trade Deficit Narrows as Imports Decline
In a recent report by the statistical service, it was revealed that the trade deficit for the first two months of the year has seen a significant reduction. The figures dropped to €1,144.4 million, down from €1,929.6 million during the same period last year. This change is attributed to a substantial 32% decrease in imports, coupled with a slight 4% fall in exports.
The foreign trade statistics draw on finalized data for January and provisional numbers for February. Cystat indicated that total imports of goods in February experienced a 9.2% increase to €841.1 million from €770.5 million in February of the previous year. Imports from other EU states stood at €543.8 million, while imports from third countries reached €297.3 million, up from €536.2 million and €234.2 million respectively in February 2023.
Notably, imports in February included the transfer of economic ownership of vessels, totaling €1.9 million, a stark contrast to the €56.8 million recorded in February 2023.
On the export front, February saw a downturn with total exports at €243.1 million, a decrease of 6.8% from €260.8 million in the same month last year. Exports to EU states amounted to €116.2 million and to third countries were €126.9 million, compared to €65.1 million and €195.7 million respectively in the previous year. The transfer of economic ownership of vessels was also reflected in the export figures, with a total value of €21.7 million versus €87.6 million in February 2023.
Looking at the combined figures for January and February, total imports of goods amounted to €1,698.4 million, down by 32.2% from €2,505.6 million in the initial months of the previous year. Total exports also dipped slightly by 3.8%, from €576.0 million to €554.1 million.
Delving into January’s performance, Cystat reported that final data showed a dramatic 50.6% decrease in total imports, which amounted to €857.3 million compared to €1,735.1 million in January 2023. Domestic exports saw a modest rise of 1.8%, with industrial products exports at €133.9 million and agricultural products at €8.2 million, showing an increase from the previous year’s figures.
However, January’s exports of foreign products, including stores and provisions, fell by 3.8%, standing at €167.8 million compared to €174.5 million in January 2023.
The overall reduction in the trade deficit reflects a shifting landscape in international trade, with import and export dynamics playing a key role in shaping economic outcomes.
