G20 trade grew in third quarter: OECD

While global trade is now facing a looming threat posed by planned U.S. tariffs, merchandise and services trade across the G20 expanded last quarter, according to new data from the Organization for Economic Cooperation and Development (OECD).

On Tuesday, the Paris-based group reported that G20 merchandise trade grew in the third quarter, following a “mixed performance” in the previous quarter.

Exports rose by 0.4% on a quarter-over-quarter basis, and imports increased by 1.5%, “largely driven by trade growth in North America and Europe,” the OECD said.

In particular, U.S. exports and imports climbed significantly, rising 2.5% and 3.1%, respectively, “fuelled by strong trade in capital goods, including semiconductors.”

Canada’s exports rose by 0.9% in the quarter, the OECD said, “driven by higher sales of mineral products and consumer goods.”

The European Union saw exports expand by 1.8% in Q3 “after several quarters of weak growth,” the report noted, “with key contributions from Germany and Italy.”

In Asia, Japan enjoyed a 4.9% quarterly surge in exports, and imports were up by 3.4%. Meanwhile, China saw merchandise trade shrink, as exports fell by 3.4%, “largely due to weaker demand for furniture and plastics,” and imports declined by 2.0%, “mainly due to reduced purchases of crude petroleum.”

The OECD also reported that preliminary estimates indicate that services trade continued to expand in the third quarter, as services exports rose by 2.8% and imports were up by 1.4% in the period.

In the U.S., services exports rose by 1.3% in the quarter, while imports were up by 2.3%.

Canada’s exports grew by 1.3% in the third quarter, and imports were up 2.0%, “mostly from travel.”

In Europe, services exports grew strongly in Germany and France, while imports were up sharply in the U.K., the OECD noted.

For Asia, China’s exports soared by 16.4% in the third quarter, “fuelled by strong transport and travel revenues,” the report said, but imports were down by 4.2% in the quarter.