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WTO Notes World Merchandise Trade Dip Amid Supply Chain, COVID-19 Crises

World merchandise trade dipped 0.8% in the third quarter of 2021 following four straight quarters of expansion, the World Trade Organization said, pointing to supply chain disruptions, with imports in North America and Europe weaker than forecast; production input shortages,…

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in particular semiconductor shortages; and rising COVID-19 cases as the omicron variant recently emerged, as the causes. Trade volume was up 11.9% year-to-date through September, although this was slightly lower than the WTO's most recent trade forecast, the trade organization said. With export and import prices rising sharply, the value of world merchandise climbed 24% year-on-year in the third quarter. This boost was fueled by primary commodities including fuels, which saw prices double from the third quarter of 2020 to the third quarter of 2021, the WTO said.