G20 global merchandise trade sees record high in Q1

ANKARA

G20 international merchandise trade saw record levels in the first three months of 2021 compared to the previous quarter, with exports and imports rising by 8%, and 8.1%, respectively, the Organization for Economic Cooperation and Development (OECD) announced on Thursday.

Except for the UK, all G20 economies posted positive growth in the first quarter, with the depreciation in the US dollar and related increases in commodity prices playing a role in the recovery from COVID‑19 lows.

Countries such as Argentina, Australia, Brazil, and South Africa have enjoyed rising commodity prices.

"Prices of agricultural commodities, including cereals and vegetable oils, increased by over 10% in Q1, while prices of metals are close to levels last observed in 2011," said OECD.

The countries above are among G20's largest exporters of those products, it added.

In addition, a rise of about 35% in crude oil prices in the first quarter of 2021 is reflected in the rising export values of Canada (up 10.8%), Russia (up 13.1%), and Indonesia (up 12.4%).

"Since energy products are a major import for most G20 economies, the price increases also resulted in higher import values in the same period," added the OECD.

Surge in demand for semiconductors

The OECD also underlined that the pandemic-driven boom in electronics purchases caused a surge in demand for semiconductors and integrated circuits.

"Along with several other factors, this led to supply failing to keep pace with demand, resulting in shortages and price rises," it said.

While higher trade of semiconductors partly translated into total merchandise trade growth in the US, where exports and imports were up 5.7%, and 5.3%, respectively, chip shortages especially affected automotive supply chains.

China, the G20's biggest merchandise trader, saw both exports (18.9%) and imports (19%) soar during this period.

Chinese import growth was driven by metals and metal ores, cereals, and integrated circuits, while export growth was led by electronic products including integrated circuits, vehicles, and textiles.