March 24, 2025
Global trade hit a record $33 trillion in 2024, expanding 3.7% ($1.2 trillion), according to the latest Global Trade Update by UN Trade and Development (UNCTAD), which warns that while trade remains strong, uncertainty looms in 2025.
Services 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.
Most regions saw positive growth, except for Europe and Central Asia. Growth varied by industry - agri-food, communication technology and transport saw gains, while energy, apparel and extractives slowed due to weaker demand and policy shifts.
However, momentum slowed in the second half of the year. In the fourth quarter, trade in goods grew by less than 0.5%, and services edged up just 1%.
Trade inflation neared zero as prices for traded goods stabilized in the last quarter of 2024. The lingering effects of high post-pandemic inflation appear to have run their course.
In 2024, developing economies outpaced developed nations, with imports and exports rising 4% for the year and 2% in the fourth quarter, driven mainly by East and South Asia. South-South trade expanded 5% annually and 4% in the last quarter.
Source: UNCTAD