G20 international merchandise trade contracts in second quarter of 2018

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2018-08-31

G20 international merchandise trade, seasonally adjusted and expressed in current US dollars, contracted in the second quarter of 2018 following eight consecutive quarters of growth. G20 exports declined by 0.6% and imports by 0.9%.

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In the second quarter of 2018, exports grew in Saudi Arabia (9.7%), India (5.7%), the United States (4.4%), Canada (4.4%), Russia (1.2%) and Australia (1.2%), but contracted strongly in Argentina (minus 19.9%), Brazil (minus 9.0%) and the United Kingdom (minus 6.9%), with falls also recorded in China (minus 2.8%) and the European Union (minus 1.9%).

Imports contracted in most G20 economies, most significantly in Turkey (minus 9.4%) and Brazil (minus 6.5%). Imports only increased in India (2.9%), Canada (1.4%), Mexico (1.4%), Japan (1.2%) and Indonesia (1.2%).

The widespread contraction in international merchandise trade can be partly explained by the significant depreciation of a number of currencies against the US dollar in the second quarter of 2018, notably the Argentine peso (down 18%), the Turkish lira (down 15%), and the Brazilian real (down 11%). These effects were partially offset by rising oil prices: benchmark Dubai Crude increased to 71.6 USD per barrel in the second quarter compared to 64.0 USD in the previous quarter.

Source: Organization for Economic Co-operation and Development

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