Global exports of intermediate goods gain momentum: WTO

The exports Intermediate goods (BI), such as parts and components, rose 47% year-on-year in the second quarter of 2021, according to a quarterly report from the OMC released Wednesday to help track the health of global supply chains.

The increase sustains the upward trend in BI exports recorded in the first quarter (20%), during which the BI trade of most major exporters largely exceeded 2019 pre-pandemic levels.

Africa recorded the highest growth in BI exports in the second quarter (88%), mainly due to strong increases in exports of precious metals and stones such as rhodium, diamonds, copper / copper cathodes and iron ore concentrates.

For its part, South and Central America they achieved a 53% increase, also related to a strong increase in exports of basic products such as iron and copper ores.

China maintained high growth in the supply and demand of international inputs (more than 40% in the second quarter of 2021), while the greatest advances were registered in the exports of BI from Australia (74%), mainly due to the exports of iron ore concentrates (101% in the second quarter) and wheat and meslin (183%), and imports from India (119%), essentially linked to non-monetary gold (1,034%), diamonds in gross non-industrial (896%) and integrated circuits (333 percent).

Exports of Transportation equipment increased highest in the second quarter of 2021, at 69 percent.

This is primarily a Recovery from a low base after the sharp decline seen for the sector in the second quarter of 2020: the automotive industry suffered the most in terms of effects on demand and supply chains during the peak of the pandemic.

Meanwhile, exports of food and drinks they rose the least in the second quarter of 2021, at 29 percent. Unlike other industries, the food sector did not show a marked slowdown in the second quarter of 2020.

BIs are inputs that are used to produce a final product. They range from crops used in food production to textiles and metals needed to make goods.

Trade in intermediate goods is an indicator of activity in supply chains, which was severely affected in the early stages of the Covid-19 crisis.

The share of BIs in total trade (excluding fuels) in the second quarter of 2021 was 52%, a proportion that remained constant over the last decade.