FX.co ★ Italy Trade Balance Swings To Surplus

In January, Italy saw a positive shift in its foreign trade balance, moving from a deficit to a surplus, according to data from the national statistical office, Istat. This shift can be attributed to a faster decrease in imports compared to exports.

Notably, the trade surplus for January stood at EUR 2.65 billion, a significant improvement from the EUR 4.2 billion deficit recorded in the same month last year. In December, the surplus was even higher, reaching EUR 5.5 billion.

Year-on-year, January saw a slight decrease in exports by 0.2 percent, following the more marked 7.8 percent drop in November. Exports to European Union countries remained largely unchanged, while those going to non-EU countries fell by 0.4 percent.

The data also revealed that imports considerably contracted by 13.5 percent year-on-year in January, succeeding a 17.3 percent slump in the preceding month.

With seasonal adjustments accounted for, both exports and imports saw reductions, falling by 3.2 percent and 7.3 percent respectively. Consequently, the trade surplus rose to EUR 6.77 billion in January, marking an increase from the EUR 4.99 billion recorded in December.