The second quarter of 2021 saw international merchandise trade for the G20, as measured in seasonally adjusted current US dollars, reach a new high following the record levels already posted in Q1 2021. G20 merchandise exports and imports increased by 4.1% and 6.4% in Q2 2021 compared to the previous quarter, showing a slowdown compared with the rates posted in Q1 2021 (8.6% and 8.5% for exports and imports, respectively). Like in the previous quarter, rising commodity prices explain a large part of the increase, as congestion in international shipping and supply issues around semiconductors placed further pressure on the price of traded goods.   

The G20 economies more reliant on exports of primary commodities saw strong export growth in Q2 2021, a combination of increasing prices, limited global supply (e.g. copper) and strong demand (particularly from China, Japan and Korea). Australia’s exports increased 10.0% in Q2 2021, on the back of rising sales of cereals, metals and coal. Brazilian exports rose by 29.4%, driven by iron ores and soybeans. Russian exports grew 30.7% in Q2 2021, mostly benefiting from increasing energy prices.