Friday February 6, 11:02 AM
French official trade deficit hits record in 2008
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PARIS (AFP) - France's trade deficit widened by 38 percent last year to a record 55.7 billion euros (71 billion dollars), customs authorities reported Friday, blaming higher energy costs and an overall economic downturn.
Exports rose to 409 billion euros from 401 billion in 2007 while the value of imports increased to 465 billion from 442 billion euros.
The shortfall in December shrank to 2.45 billion euros from 6.0 billion in November, which analysts attributed to weaker oil prices at the end of the year along with declining domestic demand.
The finance ministry said 80 percent of the 2008 deficit could be attributed to higher energy bills. But it said the recent decline in crude prices should "considerably lighten" the energy burden in 2009.
The trade balance likewise suffered from crumbling worldwide demand, a trend that hurt French auto sales abroad.
"A fall in demand in our foreign partners" has become "an aggravating factor," said Anne-Marie Idrac, secretary of state for trade, who noted that France last year exported 200,000 vehicles to Spain, down from 300,000 in 2007.
French exports to fellow European Union members, following a sharp rise in the first year, later weakened, as did imports of EU products.
French companies fared better in Latin America, emerging Asia and the Middle East, where the value of exports rose 18, 4.0 and 8.0 percent respectively.
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