The euro zone's trade surplus narrowed sharply in 2003 from the previous year amid warnings from European leaders the strength of the euro might strangle the economic recovery.
The 2003 surplus fell to €72.5 billion from €98.9 billion in 2002 as exports from the 12-nation bloc fell 3 per cent to €1.05 trillion. Imports slipped 1 per cent to €979 billion, said EU statistics office Eurostat.
But despite the strength of the euro, which hit a lifetime high of $1.2927, the surplus in December rose to a higher-than-expected €5.7 billion from a revised €5.1 billion in November. Eurostat had originally reported the November surplus as €5 billion.
Yesterday French President Mr Jacques Chirac expressed concern about currency market volatility while German Economy Minister Wolfgang Clement said the currency was one risk to recovery and Europe should be prepared to act if necessary.