Eurozone trade surplus increased in September as the decline in imports exceeded the fall in exports, indicating that weak domestic demand was one of the factors behind the recent recession.
The trade surplus increased to EUR 9.8 billion in September from EUR 5.2 billion in August, data from Eurostat revealed Friday. The surplus was also bigger than a EUR 1.7 billion excess in September 2011. Economists had forecast a surplus of EUR 10 billion.
Likewise, the seasonally adjusted trade surplus increased to EUR 11.3 billion from EUR 8.9 billion in August.
On a seasonally adjusted basis, exports dropped 1.1 percent in September month-on-month, partially offsetting a 3.3 percent rise in August. Likewise, imports slipped 2.7 percent after increasing 2.3 percent.
However, today's data showed that exports grew 1 percent from a year ago in September and imports slipped 4 percent.
Domestic consumption is deteriorating in the region due to a rise in unemployment and low income growth. In the third quarter, the euro area officially slipped into a recession as governments across member nations unfold tough austerity measures. The economy shrank 0.1 percent from a quarter ago.
The previous recession was in 2008, which lasted until the third quarter of 2009. The region has also failed to expand since the third quarter of 2011.
The European Commission expects the euro area economy to come to a standstill next year after shrinking 0.4 percent this year.
by RTT Staff Writer
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