World trade up 17pc in Q4, with South, Central America leading

GLOBAL merchandise trade grew 17 per cent in the fourth quarter of 2010 compared to the same period in 2009 reaching US$4.1 trillion, slightly up on previous quarter, reflected in air freight and sea freight volume increases.


Despite 70 countries, 90 per cent of world trade, dipping trade in December 20 per cent overall year-end value, as opposed to volume, was above December 2008, according to the World Trade Organisation (WTO).


Brazil, Russia, India and China (BRIC) led the way with countries export and import values well above pre-recession levels. Brazil's exports and imports were up 38 per cent and 34 per cent year on year, and China's exports increased 25 per cent and imports 30 per cent, the Geneva-based WTO said.


South and Central America headed up regional trade flows in the final quarter of 2010 at a growth rate of 25 per cent increase in exports, imports by 30 per cent year on year. Growth rates in Asia were strong with exports up by 23 per cent and imports up by 22 per cent. Europe saw the lowest rise of 10 per cent in exports.


The forecast ahead is for moderate growth based on a manufacturing increase, according to JP Morgan Manufacturing Purchasing Managers Index (PMI) that maintained 50 year beginning, reaching 57.8 in February. This reflects demand in production and therefore new orders from consumers backing up retail sales for first two months of 2011 up 15.8 per cent in China, and in February US sales increased by 8.9 per cent year on year.


Rising oil prices and instability of key currencies could risk world trade recovery, added the report.
(Source:http://www.schednet.com)