G20 merchandise trade saw a contraction in value terms in Q4 of last year as compared to the previous quarter. Moreover, exports and imports declined by 3.5 percent and 3.1 percent respectively reflecting sluggish global demand and decreasing energy prices.

Falling oil prices impacted merchandise trade in North America with exports contracting by 5.4 percent in the United States, 6.7 percent in Canada and 3.1 percent in Mexico in Q4 2022.

Chinese exports and imports declined by 7.1 percent and 2.5 percent, respectively, as Beijing's Zero COVID policy weighed on trade. Weak demand from the world's second largest economy placed further strain on trade in East Asia.

However, merchandise exports grew by 0.9 percent in the European Union due to strong sales of machinery and transport equipment in Italy, France and Germany.

G20 merchandise and services trade fell in Q4 2022, marking a gloomy end to a challenging year, said OECD.

Additionally, the G20 services trade also declined in value terms in the final quarter of 2022 as measured in current US dollars. Exports and imports are estimated to have decreased by 0.8 percent and 1.5 percent respectively. Imports and exports witnessed one percent decrease and 0.3 increase in Q3 2022.

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First Published:Feb 24, 2023 12:19 PM IST