France's trade deficit hit a record 29.2b euros (£19.5b; $38b) in 2006, as high energy costs and falling exports took their toll.

French exports totaled 386.9b euros last year, but imports reached a higher 416.1b euros, official figures showed.

Analysts said French exporters were continuing to struggle with weaker demand in Germany, usually a key market for French goods.

But the government said the deficit had been driven by rising energy prices.

"If you look at the trade balance without energy prices you will see that not only do we have a surplus, but our surplus is growing, growing for the first time since 2001," said trade minister Christine Lagarde.

The key French car industry reported a 1.9% decline in exports in 2006, although record deliveries of Airbus planes helped boost the total export figure.

France's trade deficit contrasted sharply with the record 162b euro surplus reported by Germany on Thursday. (Source: BBC)