ISTANBUL
Global trade reached an all-time high of $33 trillion, posting a 3.7% annual growth in 2024, according to the Global Trade Update by UN Conference on Trade and Development (UNCTAD) on Friday.
The significant growth in services trade, which surged by 9% last year, was a key driver, contributing $700 billion, or 60% of the total yearly increase.
Meanwhile, goods trade grew by 2%, contributing $500 billion to the growth.
Developing economies passed developed nations, with imports and exports rising 4% for the year and 2% in the fourth quarter, driven mainly by East and South Asia.
On the other hand, developed economies saw their trade stagnate for the year and drop by 2% in the last quarter.
South Korea led the way with an 8% annual increase in goods exports and 11% in services exports.
The US saw merchandise imports climb 6% annually and 1% quarterly, with exports increasing 2% year-on-year but decreasing 1% in the quarter.
China’s goods trade strengthened, with a 1% rise in imports and a 5% increase in exports in 2024.
Services trade of China saw even more significant growth as exports grew 9% annually, while imports rose 14% year-over-year.
The report noted that China's strong exports pushed the country's trade surplus to its highest level since 2022, while the EU, with the help of high energy prices, reversed its previous deficits and posted a trade surplus this year.
"Trade remained stable in early 2025, but mounting geoeconomic tensions, protectionist policies and trade disputes signal likely disruptions ahead," it said.
Falling freight indices indicate weakness in demand for manufacturing products, inputs and commodities, the report said, reflecting the efforts of businesses to adapt to increasing uncertainties.
"Tariff escalation discourages developing economies from exporting value-added goods, hindering industrialization," it added.