MERCHANDISE trade nosedived in most major economies in the fourth quarter of 2011. Total imports of G7 and BRICS countries shrank by 0.2%, following the 0.7% fall recorded in the previous quarter. Total exports saw a drop of 1.2% compared to a 0.9% increase in the previous quarter.Merchandise trade fell sharply in all major euro zone economies and exports and imports were seen at the level that was existing at the beginning of 2011.

Imports rose by 1.8% in the United States and by 4.7% in China but exports contracted in both economies for the first time since the second quarter of 2009. Imports grew marginally in Canada but exports also contracted. In Japan , exports fell 5.0% compared with the 7.8% growth seen in the previous quarter which had been partly due to a technical rebound after the earthquake. Import growth slowed to 1.2%. Imports and exports also fell in India and South Africa but grew in Russia and Brazil.