|The eurozone's strong economic growth is set to cool in the coming quarters after hitting a five-year record in the second quarter, official EU data show (AFP Filed Photo)|
The eurozone's trade balance with the rest the world slid into deficit in August as exports from the 12-nation bloc fell and imports held steady, the European Union's Eurostat data agency said Wednesday.
The eurozone posted a trade deficit of 5.8 billion euros (7.27 billion dollars) compared with a surplus of 1.6 billion euros in July and a deficit of 2.7 billion euros in August 2005.
Exports fell to 105.5 billion euros in August from 112.9 billion euros in July, while imports remained unchanged at 111.3 billion euros.
In seasonally adjusted terms, the eurozone booked a trade deficit of 5.5 billion euros in August, down from a deficit of 6.2 billion euros in July. Exports rose to 114.7 billion euros in August from 111.1 billion euros in July in seasonally adjusted terms, while imports increased to 120.2 billion euros from 117.4 billion euros.
Global Insight economist Howard Archer put the August deficit down to high energy costs and found positive signs of demand in the fact that imports held firm.
"The large eurozone trade deficit in August was undoubtedly inflated by high energy import costs," he said.
"The strength of imports is... likely to reflect robust eurozone domestic demand," he added.
Meanwhile, the trade balance of the 25-nation EU gave a deficit of 21.5 billion euros in August, wider than the deficits of 12.5 billion euros in July and 14.6 billion in August 2005.