AS per OECD, G20 merchandise trade growth in value terms saw a marked slowdown in Q3, albeit levels remain at record high partly reflecting strong commodity prices. Surging shipping costs and a recovery in travel spurred faster growth in trade in services, with exports for the G20 nearing 2019 levels.

In Q3 2021 international merchandise trade for the G20 plateaued at a record high, following four quarters of sustained growth. G20 merchandise exports and imports increased by 0.9% and 0.4% in Q3 2021 compared with the previous quarter, as measured in seasonally-adjusted current US dollars. This represents a marked slowdown compared to the first half of the year, when rising commodity prices boosted the value of traded goods. Sustained demand for electronics and high energy prices continued to play a role in Q3 2021, while overstretched semiconductor supply-chains weighed on trade in vehicules and parts.

Growth in services exports and imports for the G20 is estimated at around 5.1% and 5.8% in Q3 2021, respectively, compared to the previous quarter and measured in seasonally adjusted US dollars. The preliminary estimates compare to the slower rates of 3.1% and 4.8% recorded in Q2 for exports and imports. With shipping costs peaking towards the end of the quarter, the value of transport services trade continued to soar in Q3, while a temporary improvement in the sanitary situation boosted travel, particularly in Europe.