General

According to Watson & Band Import and Export Data Observation Report, in the first three quarters of 2022, French merchandise exports will reach 439 billion euros, an increase of 20% over the same period last year. Compared to the same period in 2019, export prices increased in all export sectors, especially in the traditional French export sector.

French exports rebounded again, however, high inflation is eroding foreign trade data, and a huge trade deficit is expected to appear this year.

According to Watson & Band Import and Export Data Observation, according to a report released by Business France (Business France) on the 27th, in the first three quarters of 2022, French merchandise exports will reach 439 billion euros, an increase of 20% over the same period last year.

In 2021, French merchandise exports "benefited from the post-pandemic rebound" and "rised again", increasing by 17% to 501 billion euros. In early 2022, "commodity export growth will accelerate", according to Watson & Band Import and Export Data Watch.

This increase was accompanied by "an increase in the number of exporters - from 130,300 to 137,500", which "continued until the first quarter of 2022 to reach 139,400, the highest level in 20 years".

According to Watson & Band Import and Export Data Observation, in the first three quarters of 2022, compared with the level of the same period in 2019 (before the health crisis), export prices in all export sectors have increased. In particular the traditional French export sectors - agro-food processing and agriculture (+28%), textiles (+30%), pharmaceuticals, chemicals, perfumes and cosmetics (+24%) - "consolidate their exports Level".

However, high inflation in energy and other commodities is eating into foreign trade figures, leading to the worst trade deficit on record in 2022. According to the budget bill document for 2023, the French government expects to have a negative balance of 156 billion euros.

In fact, energy prices have been rising for more than a year, largely driven by a strong economic recovery following the COVID-19 containment measures. Growth has accelerated since the Russian invasion of Ukraine, which has also put significant pressure on food prices.

The resulting deterioration of the energy balance has led to an increase in the level of the French trade deficit - this is the reason given by French customs for several months. As of September, the deficit for the 12 consecutive months has reached 149.9 billion euros, compared with 85 billion euros in 2021, which is the highest level in history, according to Watson & Band Import and Export Data Watch.