A new high for G20’s merchandise trade in Q2 2021
OECD – Paris, 24 August 202 – Value of G20 merchandise trade at new high in Q2 2021, but signs of easing growth
In the rear of a great first quarter of 2021, the G20 recorded a new peak in merchandise trade for the second quarter : exports grew by 4.1% and imports by 6.4%. It is a slowdown compared to the Q1’s growth (8.6% and 8.5% reported). Growing commodity prices explain a large part of the increase, as congestion in international shipping and supply issues around semiconductors placed further pressure on the price of traded goods.
Economies more reliant on exports of primary commodities had a solid export growth in Q2 2021 thanks to a limited global supply combined with an increase in prices and in demand (especially from Asia). Australia’s exports rose by 10%, primarily pushed by their rising sales of cereals, metals and coal. Brazil saw it’s exports spike by 29.4%, launched by Iron ores and soybeans. Russia’s exports rose by 30.7%, mostly from the increasing energy prices.
Merchandise trade values in North America reached an all-time high in Q2 2021. Canada’s exports were up 4.7% (mostly energy and forestry products) and it’s imports rose by 3.6% (largely metals and pharmaceutical products). Mexico also recorded solid growth with exports up 3.3% and imports up 5.1%. The United States recorded growth of 6.8% for exports in the quarter, led by aircraft, pharmaceuticals and semiconductors and with strong demand from Canada and Mexico. Despite languid purchases of vehicle, imports rose 4.2% owing to robust acquisitions of mobile phones.
European G20 economies saw a notable increase in international trade in aircraft, agriculture products and pharmaceuticals, triggered in particular by demand from China and the United States. In Q2 2021 the European Union recorded export growth of 2.8% and import growth of 5.7% (France 1.3% and 2.9%, Germany 1.3% and 6.3%, and Italy 4.0% and 6.4%). In the United Kingdom, exports rose 12.3% and imports 11.3% in Q2 2021, which is a strong rebound following the Q1 slowdown.
In Q2 2021, the East Asian G20 economies imports grew faster than exports, due majorly to a rise in commodity prices.Exports from Japan and Korea grew by 2.7% and 2.2%, while imports rose respectively by 7.4% and 11.8%, with trade in vehicles and parts driving the increase in particular for Korea. Following the staggering 18.6% growth in the previous quarter, Chinese exports declined by 2.5% in Q2. However, their imports continued to expand up 10.9%, with purchases of agricultural products, metals and semiconductors remaining strong.
Source: OECD Statistics and Data Directorate.
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