G20 merchandise exports flat in 2nd quarter

By Tuba Ongun

G20 merchandise exports remained stable in the second quarter of 2024 compared to the first quarter, according to the Organization for Economic Cooperation and Development (OECD) on Friday.

The stability in exports was primarily due to a decrease in exports from the European Union, as noted by the Paris-based organization.

However, G20 merchandise imports returned to growth in the April-June period after seven consecutive quarters of contraction, rising 1.2% from the previous period. This growth was bolstered by strong increases in the US and UK.

In the US, merchandise exports recorded 0% growth in the three months leading up to June, partly due to declines in shipments of industrial supplies and materials. Meanwhile, Canadian exports fell by 1.1%, driven by decreases in the motor vehicles and mineral sectors.

EU exports declined by 0.9% quarter-on-quarter in April-June, reflecting reduced sales of chemicals and other manufactured goods in Germany. However, imports to the EU posted growth for the first time in two years, increasing by 0.2% from the previous period.

The UK saw a 2% decrease in exports, while imports surged by 8.3%, led by machinery and transport equipment.

In Asia, merchandise exports rose by 2% in China and 2.7% in Korea, driven by strong sales of automobiles, semiconductors, and high-tech equipment. Conversely, Japan's exports dipped by 2.1%, partly due to the closure of a major automobile plant and a weak yen.

Meanwhile, G20 exports and imports of services in the second quarter increased by 1.9% and 1.1%, respectively, slowing from the 3.4% and 3.7% increases recorded in the first quarter.