Middle East conflict hits the eurozone, turning May’s trade surplus into a sharp deficit
智通财经2026/07/16 17:31- In May, the Eurozone recorded a trade deficit of 7.8 billion euros in goods, compared to a surplus of 15 billion euros in the same period last year. The continued rise in energy prices, combined with supply disruptions in the Middle East, resulted in the first monthly deficit ever for this major global trading bloc.
- According to Eurostat data, after seasonal adjustments, exports in May saw a slight increase of 0.6% month-on-month, while imports grew sharply by 2.8%. The surge in energy imports was the main driver behind the widening deficit.
- The energy deficit expanded rapidly, while the surplus in machinery, vehicles, and chemical products narrowed, collectively dragging overall trade performance into negative territory. The Eurozone's dependence on imported oil products is now close to 100%.
- Institutional economists noted that since February, the nominal value of imports has risen by more than 11%. Supply chain distortions triggered by geopolitical conflicts are continuing to impact the fundamentals of European trade through the energy channel.
- If tensions in the Middle East persist, high energy costs may continue to suppress the Eurozone's export competitiveness, and trade deficit pressures are unlikely to ease in the short term.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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