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Euro zone trade surplus rose slightly in October

BRUSSELS: The euro zone's trade surplus with the rest of the world widened to 6.9 billion euros ($7.1 billion) in October 1999 from 6.4 billion euros in the same 1998 month, according to provisional data released by Eurostat on Friday.

Exports (up nine percent) grew more slowly than imports (up 10 percent) but from a higher base, the data showed.

September's trade surplus with the rest of the world was revised down to 2.0 billion euros from an initially reported level of 2.5 billion euros.

Eurostat said that after revisions the cumulative surplus for January to September 1999 was 42.1 billion euros, down from 61.5 billion euros in the same 1998 period.

The data indicated that the euro's slide against the dollar in 1999 had helped exports to the United States, with the cumulative nine months surplus on U.S. trade rising to 15.3 billion euros from 10.2 billion euros in 1998.

However, the yen's corresponding rise against the euro did not appear to have dented Japanese exports to Europe - as some policy makers fear it could if it continues into 2000.

The euro zone's trade deficit with Japan widened in the January to September period to 18.6 billion euros from 17.8 billion euros, indicating Japanese manufacturers' goods were still able to make inroads in European markets.

The weaker euro-dollar rate and higher oil prices also appeared to have impacted the euro zone's nine-month trade balance in energy products, with the deficit widening to 41.2 billion euros from 38.5 billion euros in the same 1998 period.

Overall however the euro zone's trade balance in raw materials and commodities was practically stable, with a deficit of 55.4 billion euros, while its surplus in manufactured goods was down to 97.4 billion euros from 119.9 billion euros in January to September 1998.

The data showed a four percent rise in chemical exports in the January to September period was more than offset by a 10 percent rise in imports of machinery and vehicles from outside the euro zone.-Reuters