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
B2B Sellers Prefer a Unified Approach for Ecommerce
A new study from Forrester Consulting, commissioned by NetSuite, found that many midmarket, B2B sellers say their ecommerce solutions have contributed to their growth in sales, new customer acquisitions and improved customer relationships.
Download Today!
From the August 2016 Issue
A growing number of low-cost lift trucks offer new avenues for pairing equipment and applications, but less cautious buyers might find that small up-front costs come at a steep price. Selecting the proper lift truck, lift truck tips 2016, Choosing the right Lift Truck
Megatrends in ocean freight
Ocean Cargo Roundtable: What’s in store for 2017?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Getting the most out of your 3PL relationship
Join Evan Armstrong, president of Armstrong & Associates, as he explains how creating a balanced portfolio of "Top 50" global and domestic partners can maximize efficiency and mitigate risk.
Register Today!
EDITORS' PICKS
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...

Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....
Top 25 ports: West Coast continues to dominate
The Panama Canal expansion is set for late June and may soon be attracting more inbound vessel calls...