Global Trade to hit record $33 trillion in 2024: UNCTAD report

GENEVA, 5th December, 2024 (WAM) -- The United Nations Conference on Trade and Development (UNCTAD) projected global trade to reach a record US$33 trillion in 2024, reflecting a US$1 trillion increase compared to 2023.

This represents an annual growth of 3.3 percent, showcasing the resilience of global trade despite ongoing challenges.

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

In contrast, goods trade grew by a modest 2 percent, remaining below its 2022 peak.

The report highlighted challenges for developing economies, traditionally key drivers of global trade. These economies faced a 1 percent contraction in imports and a similar decrease in South-South trade during Q3 2024.

On the other hand, advanced economies led the quarter's growth, with stable demand driving a 3 percent rise in imports and a 2 percent increase in exports.

Despite obstacles, the report emphasised opportunities for developing countries to capitalise on high-growth sectors. Trade in ICT goods and clothing surged by 13 and 14 percent respectively in Q3 2024, underscoring the potential for diversification into value-added industries.

Sector-specific data revealed declines in traditional sectors critical to developing economies. Energy trade fell by 2 percent in Q3 and 7 percent over the year, while metals trade contracted by 3 percent.

Automotive trade shrank by 3 percent in Q3 but is expected to close the year with a 4 percent annual growth rate.

Meanwhile, stable global growth forecasts and reduced inflation offer promising prospects for building resilience in 2025.