Minnesota’s Economic News — W/E 1/14/22
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The Department of Economic Development has announced a 2.2% drop in Minnesota’s overall exports in 2019’s 3rd quarter. Exports rose 1% in first-quarter but fell 4% in the second quarter and 2.2% third quarter. This has been attributed to the uncertainty surrounding international trade policy.
Minnesota experienced Growth in exports in Q1 which was led by growth in demand for medical, optical, and machine products. Exports to Germany, Mexico, and France grew the most, while those to Singapore and china dropped 29% and 13% respectively.
Total exports fell 4% In the second quarter with a fall in export value to 8 of 11 major trading partners. Only exports to Japan, Germany and Australia rose.
Overall, global exports fell 2.2% in the Third quarter compared to the same time last year. Compared to the national drop of 1.7%, Minnesota has had a steeper drop for this period. Exports to North American grew, but those to South and Central America, as well as Asia, dropped. Exports to many of Minnesota’s top markets including China, Canada, The UK, and Singapore struggled.
21 states and DC have experienced growth in exports in the third quarter compared to 23 in the first quarter and 17 in the second quarter. The persisting uncertainty regarding international trade policy is likely going to continue contributing to decreasing trade.
Figure: Export growth for 21 states and DC (Q3)