The trade balance is the difference between what we buy as goods and services from other countries, and what we sell to them, between imports and exports. Not only is our trade balance negative, but in addition, the trade deficit continues to widen. It is expected to reach almost 100 billion euros this year.
NOTur trade balance is in deficit with all of our neighbors, with one exception, the United Kingdom. We thus accuse 15 billion annual deficit with Germany, from which we buy a lot of machines. The biggest deficit is obviously the one vis-à-vis China, with 30 billion euros.
At the same time, our export market shares have been halved since the 1990s, going from 6.3% to 3% of the global cake. And our path is the opposite to that of our neighbors in southern Europe, Spain and Italy in the lead, who have gradually recovered and balanced their trade balance over the years.
Today industry represents only 13.6% of the GDP, 2 points less than Spain, 5 less than Italy, 11 less than Germany. This is the result of the transition from a production economy to a consumer economy, according to the High Commission for Planning, in a study published this week. Too bad, notes the study, because producing close to home lowers the carbon footprint by reducing transport. Industry also offers higher wages, on average, than in services.
The study by the High Commission for Planning reveals a host of sectors in which France can act. For example, we are the world’s leading potato exporters. And yet we import crisps. The same goes for wood. We have one of the largest forests in Europe and yet we import furniture, especially for our bedrooms.
For François Bayrou’s services, real channels must be set up, driven by a strong political will, embodied by the State. Here is something to feed the reflections that will not fail to animate the debates around the reindustrialisation, during the presidential campaign.
Eurozone annual inflation rate up to 4.9%.
Inflation is expected to peak at the end of 2021 according to the OECD.
The report on France’s trade deficit from the High Commission for Planning.