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Euro zone trade gap slightly wider than expected

Published 03/23/2009, 06:00 AM
Updated 03/23/2009, 06:16 AM

BRUSSELS, March 23 (Reuters) - The euro zone had a slightly wider than expected trade deficit in January as seasonally adjusted exports shrank faster than imports, data showed.

The unadjusted trade deficit in the 16 countries using the euro in January was 10.5 billion euros ($14.4 billion) against a downwardly revised gap of 1.7 billion euros in December, the European Union's statistics office, Eurostat, said on Monday.

Economists polled by Reuters had on average expected a January trade deficit of 9 billion euros.

Seasonally adjusted exports fell 10.7 percent and imports by 7.3 percent in January, compared with December 2008.

On an unadjusted basis, imports sank 23 percent in January year-on-year while exports plunged 24 percent, Eurostat said.

Economists have blamed falling imports on shrinking domestic demand as the euro zone sinks deeper into its first recession. Declining exports are seen as a result of falling demand caused by the global slowdown. (Reporting by Bate Felix; Editing by Dale Hudson)

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