G20 trade snaps growth streak with first pullback since 2016
In the quarter, G20 exports fell by 0.6 per cent to $3.74tn while imports fell by 0.9 per cent to $3.79tn, on a seasonally adjusted basis. The fall follows eight consecutive quarters of growth, which began in the second quarter of 2016.
The contraction in exports was most pronounced in Argentina, where they fell 20 per cent, in Brazil, where they fell 9 per cent and in the UK, where they fell 7 per cent.
Imports fell most dramatically in Turkey, by 9 per cent, and in Brazil, where they fell 7 per cent.
The contraction in international merchandise trade was partly a result of the “significant depreciation of a number of currencies against the US dollar” in the second quarter of the year, said the OECD. The research pointed specifically to the decline in value of the Argentine peso, which fell 18 per cent, the Turkish lira, which fell 15 per cent and the Brazilian real, which fell 11 per cent.
However, it said these effects had been partially offset by rising oil prices, which contributed to price inflation.
The most significant increases in trade were seen in Saudi Arabia, where exports rose by 10 per cent, and in India, where imports grew by 3 per cent.