Data published by the Organization for Economic Co-operation and Development (OECD) showed that in the last three months of 2023, G20 merchandise trade growth flattened in value terms, as measured in current US dollars. Compared to the third quarter of 2023, the volume of exports and imports remained almost unchanged, as a steady recovery in East Asia was balanced by a slowdown in Europe and North America. The OECD said that export growth stagnated in the US. Meanwhile, in the European Union, exports decreased by 0.6% and imports fell by 1.8%. In China, exports increased by 0.6%, while imports rose by 3.9%. Exports also increased in Japan and surged in Korea thanks to strong car sales and a recovery of the Korean semiconductor business.
As for the service sector, preliminary estimates point to moderate growth for the G20 compared to the 3rd quarter. Exports increased by 1.6% QoQ after falling by 0.9% QoQ in Q3, while imports increased by 1.3% QoQ after rising by 0.2% QoQ. Exports to the United States increased by 2.5%, while imports rose by 2.0% due to increased travel and transportation costs. In Germany, exports increased by 1.6% and imports rose by 2.0%, partly due to increased spending on travel abroad. Conversely, exports of services fell markedly in France (-3.8%) and the UK (-6.2%), while imports also declined moderately in both countries. Meanwhile, exports of services rose markedly in Korea and China, reflecting a widespread recovery in most categories of services.
For the whole of 2023, G20 merchandise trade contracted in value terms, but G20 services trade continued to expand.