NEW DELHI: There is more bad news on the trade front as exports are expected to slow down further in the second half of 2022 and remain subdued in 2023 due to several related shocks, including the war in Ukraine, high energy prices, inflation, and monetary tightening in major economies. The WTO‘s latest assessment, released on Monday, will have a bearing on India’s exports, which shrunk in October for the first time since March 2021.
The WTO’s Goods Trade Barometer, a composite leading indicator, had a reading of 96.2, which is lower than the baseline value of 100, indicating a slowdown, it said, while attributing delayed shipments of goods as a result of supply chain disruptions as one possible reason.
The Geneva-based multilateral agency said the barometer index was weighed down by negative readings in sub-indices representing export orders (91.7), air freight (93.3) and electronic components (91.0). “Together, these suggest cooling business sentiment and weaker global import demand. The container shipping (99.3) and raw materials (97.6) indices finished slightly below trend and have lost momentum. The main exception is the automotive products index (103.8), which rose above trend due to stronger vehicle sales in the US and increased exports from Japan as supply conditions improved and as the yen continued to depreciate,” it said.
The WTO’s Goods Trade Barometer, a composite leading indicator, had a reading of 96.2, which is lower than the baseline value of 100, indicating a slowdown, it said, while attributing delayed shipments of goods as a result of supply chain disruptions as one possible reason.
The Geneva-based multilateral agency said the barometer index was weighed down by negative readings in sub-indices representing export orders (91.7), air freight (93.3) and electronic components (91.0). “Together, these suggest cooling business sentiment and weaker global import demand. The container shipping (99.3) and raw materials (97.6) indices finished slightly below trend and have lost momentum. The main exception is the automotive products index (103.8), which rose above trend due to stronger vehicle sales in the US and increased exports from Japan as supply conditions improved and as the yen continued to depreciate,” it said.
