EU trade deficit with China shrinks

The EU’s trade deficit in goods with China has shrunk to its lowest quarterly level for almost three years, despite fears about the bloc being flooded with cheap Chinese products, reports the Financial Times. In the three months to March, the EU’s trade deficit with China fell to €62.5 billion ($67.82 billion), down 10% from the previous quarter and 18% from a year ago. That is its lowest level since the second quarter of 2021, after it peaked at €107.3 billion in the third quarter of 2022.

There are also signs of growing transatlantic demand for European products, after the EU’s trade surplus with the US rose to a record high in the first quarter, according to data published by Eurostat on Tuesday.

Economists said the improvement in Europe’s balance of trade reflected the region’s weak domestic demand and a reversal of the post-pandemic shift in consumer spending from services to goods.