Trade Surpluses and Performance

For the Euro area, the trade balance with the rest of the world showed a surplus of €15.5 billion in December 2024. This marked a slight decline from the €16.4 billion surplus observed in December 2023. The Euro area saw a growth in its exports of goods, which increased by 3.1% from €219.7 billion in December 2023 to €226.5 billion in December 2024. However, imports also rose by 3.8%, totaling €211.0 billion in December 2024, compared to €203.3 billion in the same month of the previous year. This increase in imports suggests a greater demand for goods from outside the Euro area, albeit at a slightly slower pace than the rise in exports.

When compared to the previous month, November 2024, the Euro area’s surplus showed a minor drop, from €16.0 billion to €15.5 billion in December. Analyzing the balance by product group reveals some interesting shifts. The most significant change came from chemicals and related products, which experienced a notable decline in their trade balance, falling from €23.0 billion to €20.6 billion. Conversely, the machinery and vehicles category saw a positive change, with its surplus rising from €13.0 billion to €16.7 billion.

Looking at the performance for the year, the Euro area reported an overall trade surplus of €176.9 billion for 2024. This is a significant jump from the €57.4 billion surplus recorded in 2023. Exports for the year grew to €2,864.0 billion, showing a modest increase of 0.6% compared to 2023. Meanwhile, imports decreased by 3.7%, dropping to €2,687.0 billion. Despite these positive figures, intra-Euro area trade, which refers to trade between countries using the euro, fell by 2.9% in 2024, pointing to a slight decrease in internal demand or trade volume.

EU Trade Surplus Trends

The European Union (EU) as a whole showed a trade surplus of €16.3 billion in December 2024, which was slightly higher than the €16.1 billion surplus in December 2023. In terms of exports, the EU saw an increase in goods exported to the rest of the world, reaching €209.0 billion in December 2024, which represents a 3.7% growth compared to the same month in the previous year. On the other hand, imports rose by 3.9%, totaling €192.7 billion, reflecting the EU’s increased demand for goods from outside the union.

In comparison to November 2024, the EU’s trade surplus grew from €12.7 billion to €16.3 billion in December. This rise was mainly driven by the strong performance of machinery and vehicles exports, with the surplus in this category rising from €15.6 billion to €18.8 billion. However, three product groups saw a decline in their balances, the most significant being chemicals and related products, which fell from €21.6 billion in November to €19.7 billion in December.

For the year 2024, the EU reported a total trade surplus of €150.1 billion, marking a substantial increase from €34.4 billion in 2023. Extra-EU exports reached €2,584.1 billion, up by 1.1% compared to 2023. Imports, on the other hand, dropped to €2,434.0 billion, a decrease of 3.5% compared to the previous year. The decrease in imports could suggest a tightening in demand or reduced availability of certain goods from international suppliers. The decline in intra-EU trade by 2.2% further highlights challenges in the internal market.

Seasonally Adjusted Data and Economic Growth

The seasonal adjustments to the trade data provide a clearer picture of the trade dynamics when accounting for seasonal fluctuations. In December 2024, seasonally adjusted figures showed a slight decrease in exports and imports for the euro area, with exports falling by 0.2% and imports dropping by 0.8%. Despite this, the overall trade balance still increased to €14.6 billion, up from €13.3 billion in November 2024.

For the EU, the seasonally adjusted export figures showed a minor increase of 0.1%, while imports declined by 1.2%. This led to an increase in the seasonally adjusted trade balance, rising to €12.9 billion from €10.1 billion in November 2024. In the final quarter of 2024, both the euro area and the EU saw modest growth in exports and imports compared to the third quarter, further indicating steady, albeit cautious, economic activity.

Regional Breakdown and Key Trading Partners

The Euro area (EA20) comprises 20 countries, including major economies such as Germany, France, Italy, and Spain. These countries make up the core of the eurozone, which uses the euro as its currency. The European Union (EU27) includes all the Euro area countries, as well as others such as Poland, Romania, Hungary, and Sweden. This broader group of 27 nations represents a larger economic zone with diverse trade flows and economic activities.

In summary, the trade performance of both the euro area and the EU in 2024 has been positive, with increasing trade surpluses and stable growth in exports. While imports have risen, they have generally not kept pace with the growth in exports, resulting in improved trade balances. However, there are some underlying challenges, including a drop in intra-regional trade and the uneven performance across product categories. As global economic conditions continue to evolve, it will be essential for both the euro area and the EU to monitor these trends and adjust policies to maintain trade stability and support long-term economic growth.