AFTER a slow third quarter, G20 international merchandise trade accelerated in value terms in Q4 2021, partly due to high commodity prices, in particular for energy. While shipping costs kept the value of trade in transport services at record highs, trade in other services showed a slowdown notably in Europe, possibly reflecting a tightening of Covid-19 related restrictions towards the end of the year.

Growth in G20 international merchandise picked up in Q4 2021, with exports up 3.4% and imports up 5.0%, with respect to the previous quarter and measured in seasonally-adjusted current US dollars. This compares to the slower growth (1.5% for exports and 0.9% for imports) recorded in Q3 2021. Energy price increases continued to fuel merchandise trade growth in value terms, while pressure on supply chains, including for semiconductors, appears to have eased towards the end of the year. 

Growth in exports and imports of services for the G20 is estimated at around 2.5% and 2.4% in Q4 2021, respectively, compared with the previous quarter and measured in seasonally-adjusted US dollars. The preliminary estimates compare to the rates of 3.8% and 3.5% recorded in Q3 2021 for exports and imports. Services trade continued to expand at a sustained pace in North America and most of East Asia, while growth slowed down in Europe.

In 2021, annual merchandise exports and imports for the G20 expanded by 25.9% and 26.1%, respectively, with values around 16% above their 2019 levels. While high commodity prices explain part of the increase, stimulus packages also played a role by spurring the demand for traded goods. Annual growth in exports and imports of services is estimated at around 15.0% and 11.3%, respectively. While transport costs skyrocketed, travel, which includes the expenditure of non-residents abroad, recovered but remained subdued. Trade in computer, business and financial services performed well across most of the G20 economies in 2021.