OECD reports sharp fall in global goods trade

The growth of global trade in goods, a critical factor in the health of the world economy, slowed down sharply in the second quarter of the year, the OECD said on Wednesday.But China and Brazil ramped up their exports of goods. The slowing of growth was radical: imports by the top Group of Seven (G7) industrialised countries and the main so-called BRICS emerging economies expanded by 1.1 percent in the second quarter, down from growth of 10.1 percent in the first quarter. The BRICS countries are Brazil, the Russian Federation, India, China and South Africa. The data from the Organisation for Economic Cooperation and Development also showed that the growth of exports by these two groups slowed to 1.9 percent in the second quarter from 7.7 percent in the first quarter. However, the picture was different in China, where the growth of imports was 0.7 percent, down sharply from 11.1 percent, but exports surged to show growth of 10.0 percent from 2.9 percent.The result was "a sharp increase in the trade surplus," the OECD said. China is under pressure from G7 countries to increase its imports as a way of reducing its trade surplus and thereby global financial imbalances. In the United States, the growth of imports slowed to 3.0 percent from 11.1 percent, but export growth also slowed to 2.6 percent from 5.6 percent. Alongside China, Brazil also increased it growth of exports of goods strongly to 11.2 percent from 5.7 percent, the OECD said.