THE WORLD'S EXPORTS OF INTERMEDIATE GOODS CONTINUE TO GROW BY 27%

According to a WTO report released on February 4, the world's exports of intermediate goods (IG) continued to increase in the third quarter of 2021, although at a slower rate than the previous quarter. The increase in barter inputs for medical goods and metal products and the rise across all regions helped drive export growth. World exports of intermediate goods increased 27% year-on-year in the third quarter of 2021, compared with the 47% increase recorded in the second quarter.

Trade in intermediate goods is the input used to produce the final product, an indicator of the strength of the global supply chain. The product category "Other industrial supplies", which accounted for nearly half of total exports of intermediate goods in the third quarter, grew the fastest of all intermediate goods categories, up 38% year-on-year. during the same period last year and amounted to $1.225 billion, including intermediate goods such as vaccine products, medical parts and accessories, diagnostic or laboratory reagents, and medical intermediates. other economy.

This category also includes raw or semi-manufactured metals such as cathode copper, iron or steel articles and aluminum. The high growth rate of this category follows the 52% increase recorded in the second quarter. However, world exports of transport equipment parts and accessories grew at a slower 8% year-on-year in the third quarter compared with 69% in the second quarter. IG's growth in ore and minerals exports also slowed to 16% compared with the average growth of 47% in the first half of the year. This is partly due to lower iron ore prices in September 2021.

Belgium, which considers vaccine products to be the most traded intermediate goods, posted the largest growth, recording a 46% increase in IG exports in the third quarter after a 64% increase in the second quarter. . China's IG exports grew by 36%, and the country continues to hold the largest share of world IG exports. For the third consecutive quarter, India posted the highest growth in IG imports (65%), mainly driven by the momentum of non-monetary gold imports (up 161%). All regions increased and surpassed 2019's IG exports prior to the Covid-19 pandemic. Africa, South and Central America continue to see the strongest growth in IG exports.

In the third quarter, Africa saw its IG exports grow 42%, as several economies in the region increased the supply of metals and primary products to international production chains. For example, South Africa increased its exports by 226% and 195%, respectively, in iron ore and rhodium, while Ghana's cocoa bean exports reached $1.6 billion. South and Central America's exports of intermediate goods increased 45%, helped by increased exports of iron ore and copper (73%) and soybeans (41%). Intra-regional intermediate goods trade in South and Central America grew the most of all regions (56%).