December 24, 2021/Coronation Research
The latest report from the National Bureau of Statistics (NBS) in its series on foreign trade in goods shows the total value of trade as N13.28trn in Q3 ‘21, representing an increase of 10% on the preceding quarter and a y/y increase of 59%. Compared with Q2 ‘21, the total export value rose by just 1% to N5.13trn, and the import value rose by 17% to N8.15trn. The net result was a deficit of N3.02trn, which followed a deficit of N1.87trn the previous quarter. This makes eight consecutive trade deficits. The data were drawn primarily from the Nigeria Customs Service.
Global/Regional in focus
The COVID-19 pandemic generated an unprecedented global shock, with a devastating effect on global trade largely due to the lockdown measures that were put in place across countries as a strategy to mitigate the pandemic’s spread. The impact on international trade was evident in the decline in commodity prices in the first quarter of 2020 (e.g. crude oil, copper, among others) as well as reduced manufacturing output and disrupted operations across global value chains. Based on data from the World Trade Organisation (WTO), the initial COVID-19 shock led to a -13.3% or USD569.9bn decline in global merchandise trade from USD4.3trn in Q1 ’20 to USD3.7trn in Q2 ’20.
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