Big Increase In Euro Area Trade Surplus

The Euro area trade surplus posted a big increase in July, from -€3.5 billion in July 2008 to +€12.6 billion in July 2009. That indicates that the euro area GDP number will receive a big contribution from net exports. With indicators of domestic demand also stabilizing, this will almost certainly mean that third quarter Euro area GDP will increase significantly compared to the previous quarter (though it will remain down compared to four quarters earlier).