The trade deficits of both the UK and France hit new record highs in 2006, according to new data released on Friday, while Germany reported Thursday that it had ended the year with a trade surplus of €162 billion.

The UK’s Office of National Statistics said that the goods trade deficit was at £7.14 billion in December, putting the trade deficit for the full year at £55.8 billion. It was at £44.6 billion in 2005. The trade gap with non-European Union goods deficit was slightly lower in December, at £4.3 billion, a bit of good news amid the bad. In addition, there was a record surplus in services in 2006, at £28.5 billion last year. That was up from a surplus of £24.2 billion in 2005. The ONS downplayed the numbers by pointing out that they were distorted by a high level of VAT fraud, but analysts still were disappointed by the data.

In France, meanwhile, the trade deficit was at €29.2 billion in 2006, with exports at €386.0 billion while imports were at €4.16.1 billion. Exports were helped by delivery of airplanes built by Airbus, but exports by French automakers were down by 1.9 percent during the year. The French government blamed the record trade deficit on rising energy prices. Trade minister Christine Lagarde said that the if those energy prices were taken out of the equation, the nation’s trade balance actually showed a surplus on the year.

Tags: European Economy News //