Trade Impact

• Author: Kim Zieschang
• Position: Prepared by with asstance from Alex Massara, both of the IMF's Statistics Department.

WORLD exports grew substantially from 2000 to 2008, particularly among the world’s top three exporters—China, Germany, and the United States. In China, for example, exports grew by nearly 700 percent during the period, paralleling the rapid growth of its economy. This growth came to a halt as a result of the 2008–09 financial crisis. Between October 2008 and March 2009, foreign sales by the top 10 exporters—which account for about 50 percent of world exports—dropped by 34 percent. But since then exports have rebounded rapidly. By the second quarter of 2010, the top 10 exporters had recovered 55 percent of their decline during the crisis.

The growth in world imports that preceded the Great Recession was equally impressive. During 2000–08, the top 10 importers—who bought about 50 percent of world imports—increased their foreign purchases by 51 percent, with the United States the clear leader. As with exports, the financial crisis caused a significant drop in imports of 35 percent during the same six-month period—October 2008 to March 2009. But there was a similar sharp rebound in imports. By the second quarter of 2010, the top 10 importers had recovered 58 percent of the crisis-induced decline.

Trade among the top 10 exporters and importers and other country groups reveals...