The visible trade gap narrowed by Lm3.3 million in October 2006 but widened by Lm53.4 million during the first 10 months of the year, according to the National Statistics Office.

Provisional data for international trade show that the visible trade gap in October 2006 stood at Lm53.4 million, down by Lm3.3 million from the same month of last year. Both imports and exports increased in October 2006 when compared to October 2005. The growth in imports was due to industrial supplies, primarily machinery and transport equipment. Imports of mineral fuels, lubricants and related materials declined by Lm1.3 million in October 2006 compared to the same month of last year. Machinery and transport equipment accounted for most of the increase in exports during the month, although exports of food rose as well. From the perspective of the first 10 months of the year, the visible trade gap widened by Lm53.4 million to stand at Lm448.7 million. This came about as the increase in imports during this period, which amounted to Lm145.2 million, outstripped the Lm91.8 million rise in exports. Higher import values were registered especially for industrial supplies but there were also increases in capital goods, fuels and consumer goods. The increase in exports during the period was generated primarily by machinery and transport equipment, chemicals and food.

An analysis of the Total Trade Balance by commodity group indicates that the deterioration in the balance for the first 10 months of 2006 was due to machinery and transport equipment, mineral fuels, lubricants and related materials, and miscellaneous manufactured articles. Food showed a significant improvement in the trade balance.

The bulk of Malta’s trade flows and consequent trade deficit continued to be directed to the European Union during the first 10 months of 2006.