span>span>Thursday 15th September /span>span>2022/span>span> - 11:11 (BST)/span>/span>
The European Union’s trade deficit continued to widen amidst a backdrop of soaring energy prices and rising inflation. It recorded a trade deficit of €34bn during July, the ninth-consecutive increase and the second biggest on record.
Imports surged 44% to €269.5bn and were primarily driven by rising oil and gas prices, whilst imports rose at a softer 13.3% to €235.5bn. Unsurprisingly, the regions trade deficit widened sharply with Russia (€103.2bn from €29.9 bn) and China (€220.6bn from €116.3bn).
The news follows comments from senior European Central Bank Governing Council member Gabriel Makhlouf stating it’s “absolutely necessary” for the central bank to raise interest rates;
“A pivot to further tighten monetary policy has been necessary, as history has taught us that these issues will only be exacerbated if we delay action,” Makhlouf said during a speech in Dublin earlier today.
The euro continued to struggle for traction following the commentary as concerns remain over the EU’s economic resilience to increased borrowing costs. EUR/USD pushed back below parity whilst GBP/EUR remains above €1.15.
