Exports fall 1.3%, imports down 1.1% from previous quarter due to easing global demand, commodity prices, OECD data shows
G-20 international merchandise trade contracted for the first time in two years in the third quarter of 2022 due to a slowdown in global demand and a retreat in commodity prices, the Organization for Economic Co-Operation and Development (OECD) said on Tuesday.
Measured in US dollars, exports and imports decreased by 1.3% and 1.1%,respectively, compared to the previous quarter.
“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 Paul Schreyer, OECD’s chief statistician.
Falling oil prices weakened merchandise exports in North America in July-September, with the US and Mexico posting slower growth than in the previous quarters.
In the EU, merchandise exports and imports fell 1.5% and 0.7%, respectively, in the same period.
The OECD stressed that merchandise trade remained weak in East Asia, despite the increased sales of electronics and machinery.
Japan’s exports dropped 0.3% quarter-on-quarter and Korea’s was down 1% in three months to September. On the other hand, Chinese exports ticked up 0.7% in the same period.
G-20 services trade growth maintained its downward trend in the third quarter with exports and imports rising 0.3% and 1.7%, respectively, as the value of transport services was cut by falling shipping costs.