G20 merchandise trade contracted in value terms in the fourth quarter (Q4) of 2022, compared to the previous quarter and measured in current US dollars. Continuing the downward trend from its peak in Q2 2022, exports and imports declined by 3.5 per cent and 3.1 per cent, respectively, reflecting sluggish global demand and decreasing energy prices.
Falling oil prices weighed especially heavily on merchandise trade in North America, with exports contracting by 6.7 per cent in Canada, 5.4 per cent in the US, and 3.1 per cent in Mexico in Q4 2022. Conversely, merchandise exports grew by 0.9 per cent in the European Union, as strong sales of machinery and other equipment in Italy, France, and Germany partly offset lower shipments of chemicals and other products, the Organisation for Economic Co-operation and Development said in a news release.
In the UK, exports fell by 1.6 per cent driven down by energy and chemicals. Chinese exports and imports declined by 7.1 per cent and 2.5 per cent, respectively, as strict COVID-19 containment measures weighed on trade. Weak demand from China placed further strain on trade in East Asia. Korean exports dropped by 8.3 per cent, while Japanese exports declined by 1.4 per cent. Exports from South Africa (down 9.7 per cent), Indonesia (down 7.4 per cent), and Saudi Arabia (down 14.5 per cent) also took a hit.
Fibre2Fashion News Desk (NB)