Euro Area Performance
- The Euro area recorded a €7.8 billion surplus in trade in goods with the rest of the world in March 2026.
- This represents a sharp decrease from the €34.1 billion surplus seen in March 2025.
- The decline was driven by a 5.5% drop in exports (falling to €265.3 billion) and a 4.4% rise in imports (reaching €257.4 billion) compared to the previous year.
- For the first quarter (January-March 2026), the total Euro area surplus was €16.6 billion, down significantly from €55.4 billion in Q1 2025.
- The EU registered a €5.9 billion surplus in March 2026, which is also a massive drop from its €34.0 billion surplus in March 2025.
- EU exports to the rest of the world fell by 8.7% (to €233.9 billion), while imports rose by 2.7% (to €228.0 billion).
- The EU's first-quarter surplus stood at €8.4 billion, a steep drop from €50.7 billion in Q1 2025.
Key Drivers of the Changes
- Sector Declines: The year-over-year drop in surpluses for both the Euro area and the EU was primarily driven by substantial reductions in the "chemicals and related products" and "machinery and vehicles" sectors. Notably, the EU's surplus in chemicals nearly halved from €40.8 billion in March 2025 to €17.6 billion in March 2026.
- Energy Deficit: When comparing March 2026 to February 2026, the EU's surplus narrowed (from €9.1 billion to €5.9 billion) largely due to a widening deficit in the energy group, which deteriorated to €-28.6 billion.
- Major Trading Partners: In March 2026, the EU maintained trade surpluses with the UK (€18.0 billion) and the United States (€13.5 billion), despite a 37.1% year-over-year drop in exports to the US. The EU's largest trade deficit was with China, standing at €-32.6 billion.