Chart of the Day | The export collapse

Chart of the Day | The export collapse

The chart shows how India’s exports have started falling, in stark contrast to the buoyancy shown last year. Note that this is in spite of the depreciation of the rupee against the dollar.

The scaling back of international trade volumes has already led to a contraction in the global manufacturing sector in the last three months, according to the Purchasing Managers’ Index data.

Chinese president Hu Jintao recently said that China’s growth is facing “notable downward pressure" from the slowdown in exports.

Also See | The export collapse (PDF)

What’s more, the near-term outlook isn’t promising. Says the OECD report, “According to forward-looking indicators, the loss of momentum at the G-7 level may persist through the latter half of this year, with the recession in the euro area and associated trade and confidence headwinds enduring."