Global trade witnesses record expansion to $33trln in 2024
The services sector drove growth, rising 9% for the year and adding $700 billion – nearly 60% of the total growth.
Trade in goods grew 2%, contributing $500 billion. But looking ahead, new risks loom, including trade imbalances, evolving policies, and geopolitical tensions, stated the report.
According to UNCTAD, the gap between developing and advanced economies is widening. Asia and Latin America remain key trade drivers, but growth has slowed in many advanced economies.
South-South trade is holding up, yet Africa's intra-regional trade is shrinking, reversing gains. Meanwhile, trade between Europe and Central Asia has declined, reflecting shifting demand.
Governments are expanding tariffs, subsidies, and industrial policies, reshaping trade flows. The US, European Union (EU) and others are increasingly tying trade measures to economic security and climate goals, while China is using stimulus policies to maintain export momentum, said the report.
UNCTAD said industrial policies (long-term strategies to develop specific sectors) were reshaping key sectors like clean energy, technology and critical raw materials, risking competition distortion.
The challenge in 2025 is to prevent global fragmentation - where nations form isolated trade blocs – while managing policy shifts without undermining long-term growth. The actions taken now by governments and businesses will shape trade resilience for years to come, it added.- TradeArabia News Service
Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).
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