Money Buzz! Europa

Tag: trade

  • Slovakia trade balance: surplus of EUR 166,6 million this year

    Slovakia trade balance: surplus of EUR 166,6 million this year

    In January-June 2020, Slovak foreign trade balance was in surplus in the amount of EUR 166,6 million (by EUR 750,2 million lower than in the corresponding period last year).

    Goods in the amount of EUR 33 839 million were exported from the Slovak Republic. Compared with corresponding period of 2019, the total export decreased by 16,9 %.

    In terms of goods, the highest decrease was recorded in export of motor cars and other motor vehicles principally designed for transport of persons by EUR 2 550,1 million, parts and accessories of motor vehicles by EUR 479 million, monitors and projectors, reception apparatus for television by EUR 460,4 million, flat-rolled products of iron or non-alloy steel, hot rolled by EUR 222,5 million and new rubber tires by EUR 200,1 million.

    The highest increase was recorded in export of structure and their parts of iron and steel by EUR 48,1 million and medicaments for sale at retail by EUR 40,3 million.

    As for the most significant trade partners, export to Germany and the United Kingdom decreased by 18,9 %, Czechia and France by 17,3 %, Poland by 9,4 %, Hungary by 11,6 %, Austria by 13,9 %, Italy by 25,7 %, the USA by 39,6 %, Spain by 27,9 %, Romania by 20,7 % and the Netherlands by 8,1 %.

    In terms of the main economic groupings, export to the EU countries decreased by 16,5 % (it represented 79,5 % of the total export of the SR) and to the OECD countries by 17,1 % (it represented 87,9 % of the total export of the SR).  

    Goods in the amount of EUR 33 672,4 million were imported to the Slovak Republic with a year-on-year decrease of 15,4 %.

  • US imports from China slumps by 45% in just 7 months

    US imports from China slumps by 45% in just 7 months

    Data gathered by Learnbonds.com reveals that the value of United States trade in goods for both exports and imports with China has dropped by 45.12%.

    The dropped is largely attributed to the trade war between the United States and China.

    The data shows that in March 2020, the value of U.S. trade in goods with China amounted to around $27.78 billion with imports totaling to $19.81 billion and exports at $7.97 billion.

    In August last year, the total trade value stood at $50.62 billion with imports at $41.19 billion while exports were $9.43 billion. From August last year, the value declined and slightly rose in October to $49.04 billion.

    Between January and March this year, the trade value dropped by about 32.09%. Between March last year ($41.6 billion) and March this year ($27.78 billion), the total trade value has slumped by 33.2%.

    The data further shows that between August last year and March 2020, imports dropped by a staggering 51.9% while exports slightly plunged by 15.48%.

    From the data, it is clear that the trade value shows that imports are the most impacted compared to exports. Generally, the drop is expected to continue. According to our research report:

    The research also compared the monthly value of export for both the United States and China from April 2017 to March 2020. China’s total export value stood at $7.27 trillion while the United States value was $7.18 trillion, a percentage difference of 1.2%. The US export value has been consistent and the lowest figure was $187.7 billion while the highest value for the export was in April 2018 at $213.3 billion.

    For China, the exports were valued highest in January and February at $292.45 billion. The lowest value was registered in February last year at $135.24 billion. 

  • Austria: Decline in turnover for service enterprises (-5.5%) and trade (-4.1%)

    Austria: Decline in turnover for service enterprises (-5.5%) and trade (-4.1%)

    In the first quarter of 2020, the turnover of Austrian service enterprises decreased by 5.5% compared to the same quarter of the previous year, as Statistics Austria reports.

    The main reason for this decline is the shutdown of a large part of the enterprises as part of the measures to contain the corona pandemic.

    In the first quarter of 2020, Austrian retailers recorded a nominal sales decline of 4.1%, resulting in a 4.2% decrease in sales volume compared to the same quarter of the previous year.

    The smallest losses (-0.9% in nominal terms or -1.9% in real terms) were recorded in the retail trade, followed by wholesale trade with a decrease in sales volume of 2.5%. Adjusted for inflation, this represents a decrease of 1.4%.

    The motor trade recorded a sharp decline in sales compared to the first quarter of 2019, with -16.4% in nominal terms and -18.3% in real terms, in line with the available registration figures.

  • Netherlands: What is the secret of Dutch trade?

    Rising protectionism in China and the United States, Brexit, contracting world trade… despite all the clouds on the horizon, the Dutch economy remains surprisingly bright.

    A dominant global maritime and economic power in the 17th century, the Netherlands has remained a major player in world trade. In 2018, the Netherlands was the sixth-largest merchandise exporter in the world and, in terms of GDP, ranked third in 2015 (just behind Ireland and Switzerland).

    However, times have changed: the global economic environment is less favourable and world trade has lost momentum. Coface expects world trade to decline by 0.8% in volume over the full year 2019.

    What could this slowdown in world trade mean for Europe’s largest port?

    An enviable situation in the European context

    In 2018, Dutch foreign trade (exports and imports of goods and services) was equal to 161% of GDP, compared to 50% for Germany. With the seaports of Rotterdam, Amsterdam, Moerdijk, Terneuzen and several international airports, the Netherlands is particularly well equipped and represents an essential logistics platform in the heart of Europe.

    In a tightening global trade environment, it seems that Dutch exports are continuing to develop well with relatively high year-on-year growth rates compared to other countries. This is partly due to oil prices remaining at a high level, with crude oil and gas accounting for a significant share of exports produced in the country, but is also to the fact that the price competitiveness of the Dutch economy has increased in recent years. Labour costs decreased markedly in 2014 and have remained stable since then.

    The Rotterdam effect

    Due to the favourable geographical situation of the Netherlands and its competitive infrastructure, many goods transit via the Netherlands. The “re-export” of these goods is an integral part of the Dutch trade balance sheet. Even though the value added of these exports is very low, their volume has a major impact on trade statistics – this is known as the “Rotterdam effect”. In 2016, total exports reached €432.5 billion, of which €189.1 billion (about 44%) came from re-exports. This means that although the Netherlands recorded a trade surplus of €52.1 billion in 2016, it would have been €20 billion lower without re-exports and imports.

    New and old obstacles are looming on the horizon

    The Netherlands is indeed the gateway for goods trade to Europe, particularly from the United States and China. The new US trade policy is already showing its effects, with a slowdown in Dutch exports to the United States since December 2018. Potential US tariffs on European cars also represent an imminent threat to the Netherlands.

    But the threat of US tariffs is nothing compared to the potential impacts of a no-deal Brexit. According to CBS and the OECD, Dutch companies made a profit of €25.5 billion on exports of goods and services to the UK in 2018 (3.3% of Dutch GDP), making the UK the second-largest trading partner (after Germany) in terms of value added. And even though the United Kingdom has not yet withdrawn from the European Union, the effects of Brexit are already very visible, with the drop in the pound’s value making Dutch products more expensive for the British, therefore reducing their competitiveness.

    What future for Dutch dynamics?

    The Netherlands has unique characteristics, with an openness that makes it highly vulnerable to trade shocks, but simultaneously allows it to quickly adapt its trade relations.

    A slowdown in world trade will not necessarily immediately affect Dutch export data supported by the Rotterdam effect but also due to the increasing independence of production and trade in Europe. Private consumption and investment are now the main drivers of Dutch trade, so even if world trade is weak, the Dutch economy can grow.

    Consequently, despite this difficult global business environment, Coface still expects the Dutch economy to grow by 1.7% and 1.5% in 2019 and 2020 respectively, in line with the average growth rates of the last decade.