G20 int'l trade growth slows in Q2, 'subdued by strong US dollar'

ISTANBUL

Merchandise trade growth in the G20 eased in the second quarter of 2022, "subdued by a strong US dollar," the Organization for Economic Cooperation and Development (OECD) -- an intergovernmental body of 38 member countries -- said on Tuesday.

Exports and imports rose by 2.1% and 2.6%, respectively, in April-June, while these figures were 4.8% and 6.2% in the first three months of the year.

"While high commodity prices, exacerbated by the war in Ukraine, continued to fuel merchandise trade growth in nominal terms, the slowing growth in value terms partly reflects the increasing value of the US dollar against other major currencies," the international organization stressed.

Increasing energy prices boosted merchandise trade in North America in the second quarter, as exports rose 10.2% in the US and 11% in Canada.

In the EU, merchandise exports posted slight growth with 0.3%, while imports grew faster, up by 3%, largely driven by energy.

Merchandise exports contracted in East Asia, as exports fell by 4.9% in Japan, 0.4% in China, and 2.2% in Korea.

"High prices continued to drive the value of exports for the leading commodity traders in the G20, with exports expanding in Australia (up 12.5%), Indonesia (up 12.7%) and India (up 7.1%)," added the OECD.