Trade volumes would grow at its slowest pace in a decade this year (Chart 4). While exports from developed countries are expected to grow at 0.9 per cent this year, developing countries are likely to witness a growth of 1.9 per cent, according to the IMF. Goods exports from Asian countries would grow faster at 2.5 per cent (Chart 5). In terms of imports growth, Asia will witness a mild contraction this year.
A lot of this is getting reflected in India’s trade data as well. In the first half of FY20, while exports (non-oil and non-gems and jewellery) were stable, non-oil and non-gold imports contracted by 6 per cent, showing that despite slower growth and slowing consumption globally, India’s demand problems are more severe.
StatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines; Source: International Monetary Fund, Ministry of Commerce; Compiled by BS Research Bureau