FX.co ★ Italy Logs Lowest Trade Surplus In 16 Months On Weaker Exports

Italy experienced a decline in its foreign trade surplus in August compared to the same period last year, as exports declined more significantly than imports, according to data released by the statistical office Istat on Thursday.

The trade surplus reduced to EUR 1.43 billion from EUR 1.95 billion seen in the corresponding month of the previous year. The surplus stood at EUR 6.8 billion in July. This marks the lowest trade surplus recorded since April 2023.

In August, exports fell sharply by 6.7% year-on-year, following a robust 7.2% increase in the previous month. Exports to EU countries decreased by 6.5%, while those destined for non-EU countries decreased by 6.8%.

The drop in exports was particularly influenced by declines in sectors such as transport equipment (excluding motor vehicles), coke and refined petroleum products, and motor vehicles, as noted by Istat.

On the imports side, there was an annual decrease of 5.7% in August, which is a reversal from a 6.7% increase recorded in the previous month.

When considering seasonally adjusted figures, exports increased by 0.5%, whereas imports fell by 0.7% compared to the previous month. Consequently, the trade surplus rose to EUR 4.1 billion in August, up from EUR 3.6 billion in July.