G20 merchandise trade contracts in 2023

By Tuba Ongun

G20 international merchandise trade narrowed in value terms last year, with exports and imports falling 3.3% and 5.5% respectively from a year earlier, the Organization for Economic Cooperation and Development (OECD) said on Thursday.

In contrast, G20 services trade continued to expand in 2023, with exports and imports growing at around 7.3% and 10.5%, respectively, the OECD data showed.

In the fourth quarter of 2023, G20 merchandise trade posted 0% growth following quarters of decline as a robust recovery in East Asia was counterbalanced by a slowdown in Europe and North America, said the Paris-based organization.

US export growth stagnated in 2023, with lower sales of automobiles being offset by higher sales of industrial supplies.

Overseas shipments in the EU edged down 0.6% led by a decline in chemical products, while imports were down 1.8%.

On the other hand, merchandise trade saw strong growth in East Asia with China seeing a 0.6% climb in exports, in part driven by high-tech products such as cellphones, and a 3.9% rise in imports due to mechanical and electrical products.

Exports grew in Japan and surged in Korea due to strong automobile sales and a recovery of the Korean semiconductor business. Higher sales of primary commodities fueled outbound shipment growth in Australia, Indonesia, and Brazil.

On the services side, exports and imports saw growth of 1.6% and 1.3% in October-December 2023, respectively, following a 0.9% decline in exports and 0.2% rise in imports in the previous three-month period.

Services exports rose 2.5% in the US, reflecting higher receipts from most services, while imports climbed 2% due to higher travel and transport expenditures.

In Germany, services exports ticked up by 1.6%, with higher revenues from business and computer services, and imports rose 2.0%, in part driven by higher travel expenditures abroad.