In the second quarter of 2023, global exports of intermediate goods (IG) showed a continued downturn, falling by 8% compared to the same year, reaching a total of $2.3 trillion. This downturn is due to the decline in global consumer demand, which is mainly affected by high inflation and high interest rates, as well as stagnant commodity prices. In addition, IG, the indicator of global supply chain activity, which is used to produce final products, also reflects this downturn.

At the regional level, IG exports in Asia fell most significantly, reaching 13%. Secondly, Africa fell by 12%, North America, South America and Central America fell by 8%, respectively, and Europe fell by 2%. However, exports to South America and Central America grew by 14% compared to the first quarter in the second quarter, mainly due to the increase in Brazilian seasonal soybean exports.

In North America, IG exports declined the most in the quarter, down 3%, to $297 billion. At the same time, European industrial raw material exports fell by 2% in the second quarter. It is worth noting that, in addition to transportation parts and accessories, all IG categories exports have declined. Among them, Chinas lithium-ion battery exports grew by 40% compared to the same, thanks to the acceleration of global electric vehicle production.

In terms of IG flow, IG trade in the region also declined in the second quarter. Asias internal trade was most affected by the decline in global demand, falling 16% compared to the same year, while IG trade in North America was the least affected, falling only 2%. Interreg trade in Africa, Europe, South America and Central America also declined.

Despite the shrinking of most cross-regional transactions in the second quarter, Europe’s exports to Asia and the Americas continued to grow by 5% and 1%-2%, respectively.

These data reflect the challenges in the current global economic and trade environment, as well as the potential impact on global supply chains and international trade. In this context, countries and regions need to take appropriate measures to address these challenges and promote economic recovery and trade growth.