The value of global trade has increased by 12% this year and it’s set to reach a new record at an estimated $32 trillion, according to a recent U.N. report.
The report, released on December 13th by the United Nations Conference on Trade and Development stated, “The substantial trade growth during the last year was largely due to increases in the value of the trade of energy products.”
Trade in merchandise goods rose to $25 trillion, an increase of about 10% versus 2021. Trade in services reached nearly $7 trillion, with a 15% year-over-year growth.
The same report also signaled a slowdown as we head into 2023. The U.N. expects the inflation-adjusted value of global trade will decrease in the coming year due to the combined impact of geopolitical frictions, lower economic growth, higher prices for goods, and record levels of debt. Based on volumes, “trade continued to increase throughout 2022, a signal of resilient global demand,” stated the report.
The report went on to say, “While the outlook for global trade remains uncertain, negative factors appear to outweigh positive trends,” indicating that weaker economic growth and inflation are likely to hinder international commerce in the year ahead.
