Eurozone trade data for January painted a weak start to the year, with both exports and imports contracting sharply. Exports fell -7.6% yoy to EUR 215.2B, while imports dropped -7.3% yoy to EUR 217.2B, leaving a EUR -1.9B deficit. Intra-Eurozone trade also softened, declining -3.3% yoy to EUR 213.1B, pointing to subdued demand both within the bloc and externally.
At the broader EU level, the deterioration was even more pronounced. Exports plunged -10.0% yoy to EUR 189.2B, while imports fell -9.0% yoy to EUR 195.1B, resulting in a EUR -5.9B deficit. The decline in trade flows suggests that the slowdown in global demand is weighing heavily on European exporters, even as weaker imports reflect cooling domestic activity.
A closer look at trading partners highlights the uneven nature of the downturn. Exports to the US dropped sharply by -27.8% yoy, driving a significant narrowing in the surplus with the US to EUR 9.2B from EUR 18.1B a year earlier. Trade with China remained deeply negative, with the deficit widening slightly to EUR -32.5B. By contrast, trade with the United Kingdom and Switzerland proved relatively resilient, though still showing modest declines.
