Trade in electronic components drives growth in technology goods: UNCTAD

According to new figures released by United Nations Conference on Trade and Development (UNCTAD),demand for electronic components used in Internet-of-Things (IoT) devices drove the value of trade in international imports of information and communications technology (ICT) goods in 2017 to reach around USD 2 trillion. As per UNCTAD, trade in ICT goods grew slightly faster than merchandise trade and represented 13% of the total in 2017, down from the 16% high during the dot-com boom in 2000 but the highest in two years. By comparison, in 2017 machinery and transport equipment accounted for 37% and food for 8% of merchandise imports. Among ICT products, trade in electronic components continued to expand with an annual growth rate of 8%, a little less than that of computers and consumer electronics (9%) showing long-term, steady growth. Figure I: Global imports of ICT goods, USD billion, by product category Source: PHD Research Bureau, compiled from UNCTAD; Note: Values adjusted for re-imports and re-exports Top 10 exporters and importers of ICT goods: China is by far the largest exporter of ICT goods whereas the Republic of Korea boasted the highest growth rate among the top 10 exporters in 2017. Exports also grew significantly for all the other top ten exporters, except the US. Further, the market share of the top 10 exporters was about 86% in 2017. Meanwhile, the US is the top importer followed closely by China and Hong Kong (China). Also, Mexico was the only economy among the top 10 where ICT goods imports did not grow in 2017. The share of intra-industry trade remains high in the ICT sector, with interdependence between the big Asian, North American and European players. The top importers also typically feature among the top exporters of ICT goods. Figure II: Top 10 importers and exporters of ICT goods, USD million, 2017 and annual growth rate (2016-2017) Source: PHD Research Bureau, compiled from UNCTAD Region wise Export and import of ICT goods: