The World Trade Organization (WTO) reports that global exports of intermediate goods (IGs) grew 4% year-on-year in the second quarter of 2022 to US$ 2.5 trillion, driven by the increase in shipments of intermediate food products.
The overall growth, while slower than the increase recorded in the same period a year ago, continues to indicate stable activity in global supply chains.
The share of IGs in total trade (excluding fuels) remained at 50% in the second quarter of 2022, a ratio that has remained constant over the last decade. IGs refer to inputs used to produce a final product and are an indicator of the activity in global supply chains. In comparison, world IG exports grew by 47% year-on-year in the second quarter of 2021.
The product category “IG food and beverages” largely contributed to trade growth within supply chains, rising 20% year-on-year and amounting to more than US$ 120 billion.
World exports of “Other industrial supplies” covering a wide range of manufacturing inputs such as metal structures, electrical conductors, and medical products rose 9% while the exports of transport parts and accessories grew 1%.
World exports of ores, precious stones and rare earths, however, fell 11% year-on-year in the second quarter of 2022, reflecting the decline of iron ore prices. Imports of iron ores from Australia were among the major declines (-25%). World exports of IG parts and accessories, excluding transport equipment, dropped by 1%.