Global Trade Flow Index indicates a slight uptick in growth

All four of the BRIC countries have far outpaced original growth

By ·

Capegemini Consulting announced figures from the third edition of its Global Trade Flow Index which indicates a slight uptick in growth.

The consultancy tracks trade by quarter based on the latest available official data from national agencies of the 23 top countries in the global trade arena.

Figures revealed growth of 5 percent in worldwide trade in Q1 2010, slower than over the previous quarter (8.5 percent), as fear of a sovereign debt crisis affected European economies and the volcanic eruption in Iceland caused considerable trade disruption.

The largest rise in trade volumes was in the BRIC countries (Brazil, Russia, India and China) where export volumes rose by as much as 15 percent as compared to the previous quarter (Q4 2009) as governments’ liberalization initiatives and industrial capacity improved.

Trade growth remained strongest in Asia and Latin America in Q1 2010 (combined total trade growth of 12.80 percent compared to Q4 2009), but slightly decreased in the euro area (-0.23 percent compared to Q4 2009) due to high unemployment and substantial fiscal deficits. The trade in European economies in the first quarter of 2010 was negatively affected by the fall in the value of the euro and the rising uncertainty surrounding the Greek bailout. Trade volumes in the U.S. increased by 4.6 percent in Q1 2010 and trade deficit widened as the value of crude imports hit the highest level in the last 18 months, with barrel prices at an average of almost $79/barrel.

The third edition of Capgemini Consulting Global Trade Flow Index figures provide further evidence of the incredible growth of the BRIC economies. All four of the BRIC countries have far outpaced original growth.

India’s economy grew 8.3 percent quarter-on-quarter, indicating strong economic growth, driven in particular by a huge growth in the export of goods and services.

Despite slowing domestic demand, Russia’s total trade growth came from a boom in certain key sector exports like metal & mining, with ferrous metal exports increasing by 26.7 percent and iron ore concentrate exports increasing by 47.5 percent over the previous quarter.

Chinese export of goods gained momentum in Q1 2010 (+13 percent compared to Q4 2009), while the country is still to make progress toward rebalancing a more consumer-oriented economy.


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

BRIC · Capgemini · Trade · All Topics
Latest Whitepaper
Lead your organization through the driver shortage and over-the-road regulations.
Potential transportation disruptions are looming as increased over-the-road regulations are set to go into effect in 2017. Experts believe these regulations will further impact the already challenged driver pool as well as reduce driver productivity.
Download Today!
From the January 2017 Issue
Following LM tradition, we start off the New Year with our annual “Rate Outlook” cover story and subsequent Webcast
Moore on Pricing: The other TMS functional options
2017 Rate Outlook: Where are freight transportation rates headed?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2017 Rate Outlook: Where are freight transportation rates headed?
Join our panel of top oil and transportation analysts for an exclusive look at where rates are headed and the issues driving those rate increases over the coming year.
Register Today!
EDITORS' PICKS
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...

Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....