Global Trade Will Reach an All-Time High This Year
According to the Global Trade Update report by the United Nations Conference on Trade and Development (UNCTAD), world trade will increase by $1 trillion this year compared to last year.
With this increase, which corresponds to a 3.3 percent growth on an annual basis, the global trade volume will reach $33 trillion in 2024. This level will be recorded as the all-time high in terms of global trade volume.
The 7 percent annual increase, especially in services trade, stands out as the driving force behind this growth. Although global merchandise trade will increase by 2 percent on an annual basis this year, it will remain below the peak level in 2022.
Despite the resilience in global trade, the risk of expanding trade wars and ongoing geopolitical challenges create uncertainties on the 2025 outlook.
Opportunities may arise for developing economies
According to UNCTAD, while developing economies face slower trade growth, high-growth sectors such as information and communication technology and ready-made clothing offer opportunities for trade diversification and resilience.
However, declines are observed in traditional sectors that are critical for developing economies. While energy trade decreased by 2 percent quarterly and 7 percent annually in the third quarter, metal trade contracted by 3 percent quarterly and annually.
Automotive trade fell by 3 percent during this period, but automotive trade is expected to complete the year with a 4 percent growth. UNCTAD called on developing economies to adopt policies aimed at increasing the diversification of trade and to invest in high-value sectors to reduce risks.
UNCTAD Secretary-General Rebeca Grynspan stated that trade continues to be a cornerstone of sustainable development, saying, "Developing economies need coordinated support in order to seize the opportunities in 2025."