Trade flows collapse in 2008 but signs of falls easing in early 2009

by S. C.

G7 exports fell 9.5% while imports were down 5.6% quarter-on-quarter in the final quarter of 2008. Year-on-year exports dropped 7.9% and imports fell 6.4% in the fourth quarter.

In the United States, export volume growth dropped 7.8% and imports fell 5.1%. Compared with the previous 12 months, exports declined by 2.3% for the first time since the last quarter of 2006. The 8.4% fall in import volumes accelerated the downward trend from the first quarter 2008.

Japan’s exports plunged 19.3% in the fourth quarter 2008, about twice the rate of the G7, while imports fell 4.6%. This pattern was also reflected year-on-year with a 20.1% drop for exports and a 6.8% decline in imports.

German quarter-on-quarter exports dropped by 9.0% and imports by 6.1% in the fourth quarter. On a year-on-year basis exports fell 7.8% while imports were down 1.8%: the first falls for Germany since the fourth quarter 2006.

EU15 Extra-EU quarter-to-quarter exports dropped with 6.3% less sharply than G7 exports, while the fall in imports was more pronounced with 7.3%. This pattern was also reflected year-on-year with a 5.2% decline for exports, while imports were down 5.7%.