UN: Global Trade to Reach Record $33 Trillion in 2024

Global Trade to Reach Record $33 Trillion in 2024: UNCTAD

World trade is expected to reach a record $33 trillion in 2024, up $1 trillion from 2023, according to the United Nations Conference on Trade and Development (UNCTAD).

This represents a 3.3 percent yearly growth rate, indicating the ability of international trade to withstand setbacks.

According to UNCTAD’s latest Global Trade Update, strong growth in traded services, which increased by 7 percent this year, contributed significantly to this expansion, accounting for half of the overall growth.

In contrast, merchandise trade grew by a modest 2 percent, below its peak in 2022.

The report highlights the challenges facing developing economies, traditionally the main drivers of global trade. These economies experienced a 1 percent contraction in imports in Q3 2024 and a similar decline in South-South trade.

On the other hand, advanced economies led the growth in the quarter, with steady demand driving a 3% rise in imports and a 2% increase in exports.

The paper emphasizes chances for emerging nations to profit from high-growth industries in spite of the obstacles.

The potential for diversification into value-added industries is highlighted by the 13% and 14% growth in trade in ICT products and apparel, respectively, in Q3.

Traditional sectors that are vital to developing economies have been declining, according to sector-specific data. Metals trade shrank 3% in Q3, while energy trade dropped 2% in Q3 and 7% year over year.

Auto trade contracted by 3% in Q3 but is expected to end the year with an annual growth rate of 4%.

Meanwhile, stable global growth forecasts and low inflation hold promise for building resilience in 2025.