Global exports of intermediate goods such as parts and components rose 47 percent year-on-year in the second quarter of 2021, according to a new WTO quarterly report released on Wednesday (03.11.2021) to help monitor the strength of global supply chains.
The upward trend in exports of intermediate goods recorded in the first quarter (20%), with trade in these goods from most major exporters significantly exceeding pre-pandemic 2019 levels.
According to the WTO, the largest growth between April and June 2021, 88 percent, was registered in Africa, due to the sharp increase in exports of precious metals and other goods such as copper derivatives and iron concentrates.
Meanwhile, South and Central America recorded an increase of 53 percent, also related to a strong increase in exports of commodities such as iron ore and copper.
China maintained its strong growth in intermediate goods exports (40%), and also notable were the growth in markets such as Australia (74%), mainly due to 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%), non-industrial rough diamonds (896%) and integrated circuits (333%).
Exports of transport equipment increased the most in the second quarter of 2021, by 69 percent.
This is mainly a recovery from a low base after the sharp decline observed for the sector in the second quarter of 2020: the automotive industry was the one that suffered the most in terms of effects on demand and supply chains during the peak of the pandemic.
Meanwhile, food and beverage exports rose less in the second quarter of 2021, by 29 percent. Unlike other industries, the food sector did not show a marked slowdown in the second quarter of 2020.
Intermediate goods are inputs used to produce a final product. They range from crops used in food production to textiles and metals needed to manufacture goods.
Trade in intermediate goods is an indicator of activity in supply chains, which was seriously affected affected in the early stages of the Covid-19 crisis.
The share of intermediate goods in total trade (excluding fuels) in the second quarter of 2021 was 52 percent, a proportion that remained constant over the past decade.WTO Press Release)
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