Global trade is projected to hit a record-breaking US$33 trillion in 2024, as reported by UNCTAD, marking a 3.3% increase in annual growth or an additional US$1 trillion in value.
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The growth has been largely driven by the services sector, which saw a 7% increase for the year, contributing half of the overall expansion. In contrast, the trade of goods grew by just 2%, falling short of the peak levels seen in 2022.
Developing economies, typically strong drivers of global trade, experienced notable challenges in 2024. Imports contracted by 1%, and South-South trade saw a similar drop in the third quarter. Meanwhile, developed economies demonstrated stronger resilience, with Q3 imports rising by 3% and exports growing by 2%, fuelled by steady demand.
UNCTAD remarked, 'Despite these difficulties, there are still opportunities for developing economies to tap into high-growth areas.' The organisation pointed out that stable global growth forecasts and easing inflation could provide a platform for building economic resilience in the year ahead.
While sectors like information and communication technology (ICT) and apparel displayed robust growth, traditional industries pivotal for developing economies struggled. The energy sector witnessed a 2% decline in quarterly trade and a 7% drop over the year, while metals trade shrank by 3% on both a quarterly and annual basis. Automotive trade, meanwhile, fell by 3% in Q3 but is anticipated to finish the year with a modest 4% increase.
UNCTAD advised developing economies to adopt strategic policies that encourage trade diversification and investment in high-value industries to mitigate risks.
'Trade remains a cornerstone of sustainable development,' stated UNCTAD Secretary-General Rebeca Grynspan. 'To take advantage of opportunities in 2025, developing economies will require coordinated support to navigate uncertainties, reduce dependencies, and enhance their connections to global markets.'
Source: www.container-news.com