G20 merchandise export growth flattened in the second quarter (Q2) of 2024, measured in current US dollars, following a rise in the previous quarter, according to the latest data from the Organisation for Economic Co-operation and Development (OECD). This slowdown was largely attributed to a decline in exports from the European Union (EU), which impacted overall growth figures.

Despite the stagnation in exports, G20 merchandise imports grew by 1.2 per cent in Q2 2024, marking a recovery after seven consecutive quarters of negative growth. This increase was primarily driven by strong import activity in the US and the EU, as per OECD.

In North America, merchandise export growth stagnated in the US during Q2 2024, partly due to reduced exports of industrial supplies and materials. Canada experienced a decline in exports. However, both countries saw an increase in imports.

The EU reported a 0.9 per cent decrease in exports, mainly driven by a downturn in Germany, where sales of chemicals and other manufactured goods were reduced. Nevertheless, the EU recorded positive import growth of 0.2 per cent, marking the first positive quarter since Q2 2022.

In the UK, exports fell by 2 per cent, while imports surged by 8.3 per cent, fuelled by increased demand for machinery and transport equipment.

East Asia presented a mixed picture, with robust merchandise export growth in China and Korea. Conversely, Japan's exports declined by 2.1 per cent, partly due to the impact of a weak yen. After experiencing negative import growth in Q1 2024, imports in China, Korea, and Japan rebounded in the second quarter.

Fibre2Fashion News Desk (DP)