THE merchandise trade of G-20 has accelerated strongly in the third quarter of 2017, with both imports and exports rising by 4.3%, the highest rate of growth since the first half of 2011.

Although G20 total international trade levels remain about 5% below the recent highs of 2014, exports and imports are both significantly up on their Q1 2016 lows (by 14.5% and 17.1% respectively).

In the European Union exports (up 7.4%) and imports (up 7.3%) grew at their fastest rates since Q4 2010. France, Germany and Italy all recorded export growth above 7% while the United Kingdom also posted strong export growth at 5.5%. Imports grew strongly in France (8.8%), Germany (6.8%), Italy (7.1%) and the United Kingdom (5.2%).

In India and Indonesia exports grew strongly (above 10%) in Q3 2017. Export growth also picked up in Korea (to 6.6% - the fastest rate since Q1 2011) and Japan (to 3.2%), while in China, the G20's largest exporter, exports contracted slightly (by minus 0.1%). Imports were up strongly in Indonesia (12.9%) and more moderately in Korea (3.0%), China (2.6%) and Japan (0.5%) but contracted in India by minus 4.0%.

Export growth also picked up, albeit more moderately, in Mexico (to 1.4%) and the United States (to 1.2%) but fell (by minus 3.5%) in Canada for the first time in six quarters. Import growth also accelerated in Mexico (to 3.4%) but slowed in Canada (to 2.1%) and contracted in the United States (by minus 0.2%).

All G20 economies, except Argentina, Indonesia, Korea and Russia, saw their currencies appreciate against the US dollar in Q3 2017.