G20 merchandise trade declines in Q3 2023, continuing global slowdown

24 Nov '23

2 min read

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Insights

In Q3 2023, the G20 observed a continued decline in merchandise trade, with exports and imports falling by 1.2 per cent and 2.1 per cent respectively.
The European Union, Germany, and France experienced significant drops in exports, notably in machinery, while East Asia, particularly China, saw a major decrease in both exports and imports.

The Group of Twenty (G20) has reported a contraction in merchandise trade in the third quarter of 2023, continuing the downtrend from the previous quarter. Measured in current US dollars, exports and imports fell by 1.2 per cent and 2.1 per cent, respectively, with notable slowdowns in East Asia and Europe.

In the European Union, merchandise exports decreased by 1.5 per cent, with Germany and France experiencing even steeper declines of over 2 per cent. Similarly, East Asia witnessed a downturn in trade, with China experiencing a significant 6.1 per cent drop in exports and a 3.5 per cent decrease in imports, the Organization for Economic Cooperation and Development (OECD) said in a press release.

Japan's exports saw a marginal decline of 0.7 per cent, while South Korea reported a contrasting trend with a 1.2 per cent increase, buoyed by strong automobile sales. However, both countries faced a reduction in imports, particularly in energy products. Australia and Indonesia also faced challenges, with lower sales of primary commodities impacting their export figures.

In a contrasting trend, North America, particularly the US, defied the overall global pattern by recording a rebound in exports. This upswing was primarily driven by robust trade in energy sector, highlighting a divergent economic trajectory compared to other major regions.

Fibre2Fashion News Desk (DP)

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