Eurozone swings to trade deficit in May as imports surge

The eurozone swung to a trade deficit in May as imports surged while exports were broadly flat, data from Eurostat showed on Thursday.

The euro area's trade in goods balance with the rest of the world posted a deficit of EUR7.8 billion in May, compared with a surplus of EUR15.0 billion a year earlier.

Exports edged up 0.1% annually to EUR243.6 billion in May from EUR243.5 billion, while imports jumped 10% to EUR251.4 billion from EUR228.5 billion.

Compared with April, the euro area's trade balance deteriorated from a EUR1.2 billion deficit to a EUR7.8 billion shortfall.

Eurostat said the deterioration from a year earlier was primarily driven by a wider energy deficit and smaller trade surpluses in machinery and vehicles, as well as chemicals and related products.

In the first five months of 2026, the euro area recorded a trade surplus of EUR3.3 billion, sharply lower than the EUR78.7 billion surplus recorded in the same period of 2025.

During the January-to-May period, exports to countries outside the euro area fell 2.8% year-on-year to EUR1.21 trillion, while imports increased 3.4% to EUR1.21 trillion. Intra-euro area trade rose 3.3% to EUR1.16 trillion.

Separately, the European Union posted a EUR12.1 billion goods trade deficit with the rest of the world in May, compared with a EUR12.7 billion surplus a year earlier.

Extra-EU exports fell 1.1% annually to EUR215.7 billion, while imports climbed 10.8% to EUR227.8 billion.

The EU's deterioration was also driven by a wider energy deficit and reduced surpluses in machinery and vehicles and chemicals.

In the first five months of 2026, the EU recorded a EUR15.9 billion trade deficit, compared with a EUR70.1 billion surplus in the same period a year earlier.

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