WTO Notes Large Rebound in Intermediate Good Exports

Global exports of intermediate goods rose by 20% from the first quarter of 2021, the World Trade Organization said in a new quarterly report released Sept. 2. The large uptick in IG exports marks a rebound from when the mark dropped precipitously in the second quarter of 2020 due to the COVID-19 pandemic. China was identified as the largest driver of the surge, noting a 41% uptick in Chinese IG exports mainly for information communication technology equipment and photovoltaic cells, the report said. “The most resilient supply chains in the first quarter were for ores, precious stones and rare earths, with exports increasing by 43 per cent in the first quarter, and for food and beverages (up 22 per cent),” the report said. “In contrast, exports of transport parts and accessories posted the weakest recovery at 6 per cent following steep declines in 2020 as the pandemic affected both demand for and production of automotives.”