WTO: Trade growth is weakening
The World Trade Organization (WTO) reported that growth in world trade in goods appears to have lost momentum in the last quarter of 2022 and is likely to remain weak in the first quarter of this year.
The WTO has published its World Goods Trade Barometer Report. In the report, it was stated that the growth of world trade in goods appears to have lost momentum in the last quarter of 2022 and noted that it is likely to remain weak in the first quarter of this year as well.
GROWTH WEAKENS
In the report, it was noted that the WTO Merchandise Trade Barometer, which was 96.2 points in the previous report, decreased to 92.2.
In the report, it was recalled that the growth in the volume of world trade in goods was strong in the third quarter of 2022, registering an increase of 5.6 percent compared to the same period of the previous year. Cumulative annual growth in the first three quarters of last year was recorded to be 4.4 percent, above the 3.5 percent increase expected by the WTO in October 2022.
Leading indicators indicate that quarterly trade volume growth will likely turn negative in the fourth quarter of 2022 and annual trade volume growth will align with the forecast, according to the report.
It was stated that the expected trade slowdown may be short-lived as the container-handling capacity of Chinese ports begins to recover.
ALL SECTORS EXCEPT AUTOMOTIVE APPEAR WEAK
All the component indices of the barometer fell below trend, with the exception of the auto products index, which stood at 105.8 points, supported by higher sales and production figures in the United States, Europe and Japan than in China. , according to the report.
The report noted that although the export orders index remained below trend at 97.4 points, it points to a possible increase in the near future, and that the container shipping, air freight, electronic component and raw materials fell and stayed. below the trend.
Readings above 100 on the barometer indicate above-trend growth, while readings below 100 indicate below-trend growth. The WTO World Merchandise Trade Barometer is published four times a year. (AA)