Global intermediate goods exports dip 8% in Q2 2023

IGs, essential for producing final products, serve as a barometer for global supply chain activities. All regions reported declines in IG exports during this period, with Asia experiencing a 13 per cent drop. Africa followed closely with a 12 per cent decrease, while North America, South and Central America each saw an 8 per cent reduction. Europe registered the least decline at 2 per cent, WTO said in a press release.

On a quarter-on-quarter basis, South and Central America recorded a 14 per cent increase in exports, primarily to China, amounting to $15.3 billion. North America witnessed the most significant quarterly decrease in IG exports, dropping by 3 per cent to $297 billion, particularly affecting its trade with Asian and European industrial partners. European industrial input exports also dipped by 2 per cent in the same quarter.

Intra-regional IG trade mirrored the global trend, with notable declines across all regions. Asia, often referred to as ‘Factory Asia’, suffered a 16 per cent drop in intra-regional trade. North America's intra-regional trade experienced the least impact, with a mere 2 per cent decline. Africa, Europe, and South and Central America also reported decreases in their intra-regional trade.

Despite the general contraction, European exports to Asia and the Americas showed resilience, registering year-on-year increases of 5 per cent and 1-2 per cent, respectively.

Fibre2Fashion News Desk (KD)