Eurozone exports hit by Russian crisis

BRUSSELS, Aug 18 (AFP): Economic crisis in Russia and sluggish demand from Turkey weighed on hopes for an export-led recovery in the eurozone in June, official data showed on Monday.
Exports from the 18-nation single currency zone dipped by 0.5 per cent in June compared with May to 162.2 billion euros (US$217 billion), the Eurostat statistics agency said.
"June's eurozone trade data provided yet further evidence that the external sector remains too weak to make up for the region's feeble domestic recovery," said Jessica Hinds of Capital Economics.
Eurozone exports were dragged down by a 14 per cent slump in demand from sanction-hit Russia and an 8.0 per cent drop from Turkey, which is suffering an economic slowdown.
With imports up a slight 0.5 per cent, this meant countries in the eurozone posted a marginally higher 16.8-billion-euro trade surplus in June, up from 15.4 billion euros the month before.
"Weaker external demand played an important part in the slowdown of the eurozone export-led recovery in the second quarter," said Christian Schulz, economist at Berenberg Bank.
Policy-makers in Brussels had hoped the eurozone economy was recovering on the back of exports from periphery countries that have pushed through reforms recommended by the EU.
But there are fears the crisis in Ukraine will weigh on growth this year and some EU leaders have warned that sanctions against Russia, which came into effect this month, could further derail the bloc's fragile recovery from the eurozone debt crisis.