new economy

　　

The World Trade Organization (WTO) said on Tuesday (local time) that global exports of intermediate products (IG) increased by 4 percent year-on-year to 2.5 trillion U.S. dollars in the second quarter of 2022. Despite the slowdown, the WTO said it still pointed to a continued stabilisation of global supply chain activity.

IG's share of total global trade (excluding fuel) remained at 50% in the second quarter of 2022, a level that has remained constant over the past decade. IG refers to input products used to produce final products and is an indicator of global supply chain activity.

The WTO said the "IG Food and beverage" product category contributed significantly to the growth in trade within the supply chain, up 20 per cent year on year and totalling more than $120bn. In the quarter, the top three global IG importers and exporters were China, the United States and Germany.

Iron ore exports fell the most

By product category, global exports of "other industrial supplies", which cover a wide range of manufactured inputs such as metal structures, electrical conductors and medical products, rose 9 per cent, while exports of transport parts and accessories rose 1 per cent.

However, global exports of ores, gems and rare earths fell 11 per cent in the second quarter of 2022 from a year earlier, reflecting lower iron ore prices. Iron ore imports from Australia fell the most (-25%).

Regionally, South and Central America saw the highest growth of 22% in IG exports in the second quarter compared to the first quarter of 2022, due to Brazil's heavy seasonal soybean export trade to China. This was followed by North America (9 per cent) : US gold exports rose 74 per cent, mainly to Europe and Asia.

However, most interregional trade flows in Q2 2022 grew at a slower pace than in previous quarters, with some negative growth, such as IG exports from Europe to Asia down 11%, IG exports from North America to Asia down 4%, and IG exports from Africa to North America down 4%.

At the same time, regional IG exports to Africa showed significant growth. Meanwhile, Africa's exports of intermediate goods to South and Central America rose 100 per cent year on year, with the largest trade flows including urea and ammonium from Africa to Brazil's fertiliser industry.

Global IG import and export top 3: Zhongmei

In terms of IG exporters, in the second quarter of 2022, the world's top three IG exporters were China, the United States and Germany, but Germany's IG exports decreased by 8% year-on-year.

Moreover, countries such as Japan and Belgium are facing negative year-on-year growth in industrial exports. Belgium, for example, saw IG exports fall by 10% year on year due to lower exports of rare metals (rhodium, palladium) and machine parts to Germany, the UK and the US.

In terms of imports, in the second quarter of 2022, the top three IG importers in the world were also China, the United States and Germany.

Notably, Mexico ranks fifth on this list and has the highest growth rate of intermediate imports in the quarter (27%), moving up four places from the end of 2021, underscoring its activity in manufacturing supply chains.

Britain's imports of intermediate goods fell 10 per cent year on year. Among the most affected were gold products, with imports from Kazakhstan and Switzerland down by about 80 percent.