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Economy in Brief

Italy’s Trade Shows Deeper Deficit
by Robert Brusca July 17, 2008

Italy’s goods trade deficit emerged in May after April posted a surplus. The current deficit widened. Imports are now faltering with capital goods and transport categories showing outright declines Yr/Yr as domestic weakness takes its toll. But weak exports will shrink the trade deficit and it is instead expanding. That is because exports for now are falling faster than imports. Total exports fell at a 23% annual rate over three months and are up by just 2.6% yr/yr. Europe is slowing down and now Italy is facing such weak demand for its goods due to a strong euro and weakening growth abroad that its domestic weakness is being overwhelmed by weakness from these other sources.

Italy's Trade Trends
  m/mo % monthly rate Period Specified saar
  May-08 Apr-08 Mar-08 3-MO 6-Mo 12-Mo Yr-Ago
Current Account Bal €€ (6,325) €€ (2,816) €€ (5,203) €€ (4,781) €€ (4,209) €€ (3,548) €€ (3,290)
Goods Balance €€ (237) €€ 692 €€ 46 €€ 167 €€ 251 €€ 355 €€ (339)
Exports -5.1% 12.4% -12.4% -23.5% 0.2% 2.6% 6.4%
Imports -2.3% 10.2% -7.1% -0.1% 5.2% 3.4% 2.9%
Services Balance €€ (953) €€ (43) €€ (497) €€ (498) €€ (378) €€ (528) €€ (450)
Exports -6.4% 11.8% -5.3% -3.7% -7.8% -0.6% 2.5%
Imports 6.5% 4.3% -7.6% 10.6% 5.8% 4.5% 7.7%
Not Seasonally Adjusted All Yr/Yr
Exports May-08 May-07 May-06 May-05
Food & Beverages 13.6% -1.0% 10.3% 8.5%
Capital Goods 6.2% 3.6% 21.0% 4.4%
Transport 8.9% -1.3% 34.2% -1.9%
Consumer Goods 3.7% 0.9% 7.6% 8.3%
Other Goods 3.7% 17.0% 5.1% 19.6%
Imports May-08 May-07 May-06 May-05
Food & Beverages 11.2% -2.0% 8.9% 3.2%
Capital Goods -6.9% 4.7% 19.1% 1.1%
Transport -11.8% 7.3% 25.7% -0.7%
Consumer Goods 3.4% -0.5% 12.8% 5.5%
Other Goods 17.6% -1.0% 29.6% 27.7%
Balances in Mlns of euros
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