In the third quarter (Q3) of 2022, the Group of 20 (G20) merchandise trade data showed first signs of slowdown, as the merchandise trade fell for the first time in two years in value terms, as per the Organisation for Economic Co-operation and Development (OECD). G20’s exports and imports shrank by 1.3 per cent and 1.1 per cent, respectively in Q3 of 2022.
Following several quarters of sustained growth, leading commodity traders in the G20 saw a decline in merchandise exports, partly reflecting cooling demand and falling prices, according to the trends for international trade statistics in third quarter of 2022 released by the OECD.
Falling oil prices weakened merchandise exports in North America in Q3 2022, with the US and Mexico recording positive but slower growth than in the previous quarters. In the European Union, merchandise exports and imports contracted by 1.5 per cent and 0.7 per cent, respectively.
In the United Kingdom, exports grew by 0.8 per cent, while imports fell sharply by 9.9 per cent. Merchandise trade remained weak in East Asia, despite the increased sales of electronics and machinery. Exports fell by 0.3 per cent in Japan and by 1 per cent in Korea but picked up by 0.7 per cent in China, OECD said on its website.
“It is too early to draw any concrete conclusions, however this latest development in G20 merchandise trade deserves further monitoring as the global economy confronts multiple headwinds, including monetary tightening, receding commodity prices, and cooling demand,” said OECD chief statistician Paul Schreyer.