Global Trade Hits Record $33 Trillion in 2024
According to the UN Conference on Trade and Development, global trade reached a record high of $33 trillion in 2024, a 3.7% increase from 2023.
Global trade reached a record $33 trillion in 2024 due to several key factors:
Strong Growth in Services Support Global Trade in 2024
Global trade, reaching $33 trillion in 2024, was primarily driven by a 9% increase in the services sector. The service sector contributed roughly $700 billion to the overall expansion. In contrast, trade in goods experienced a modest 2% rise, adding about $500 billion. Key performing service sectors include finance, information technology, travel, and professional services
Growth in Goods Trade
Trade in goods rose by 2%, adding about $500 billion. The top-performing sectors include office equipment, pharmaceuticals, and agri-foods.
China Led the Growth in Global Trade in 2024
China outperformed advanced economies, benefiting from strong exports. As the world’s best exporter, China shipped $3.575 trillion worth of products worldwide in 2024, up 5.5% from $3.389 trillion in 2023. Due to robust exports, China’s trade surplus expanded significantly in 2024 to $992 billion, up from $822 billion in 2023. Meanwhile, the US trade deficit widened from $784.9 billion in 2023 to $918 billion, reflecting its growing reliance on imports.
Tariffs and Trade Barriers
Despite overall growth in global trade in 2024, UNCTAD warns of significant trade barriers. High tariffs impede market access for developing countries, particularly in manufacturing and agriculture.
Agricultural exports from developing countries still face steep import duties, averaging nearly 20%. At the same time, textile & apparel exports continue to be subjected to high tariff rates, limiting competitiveness.
Uncertainty in Global Trade Clouds 2025 Outlook
Looking ahead, UNCTAD warned that mounting geopolitical tensions, trade disputes, and protectionist policies could disrupt global exchange in 2025.
The report identified several risk factors, including:
Changes in trade policy: Increasing protectionist measures, such as new tariffs targeting specific industries, may reshape global supply chains.
Ongoing trade tensions: Major economies, including China and the United States, continue to impose retaliatory tariffs, affecting global trade flows.
Subsidies and industrial policies: Governments are prioritizing national industries, mainly green energy and critical minerals, which could affect international trade relations.
Economic slowdown risks: Indicators such as sluggish demand for container shipping suggest potential trade contraction in the coming quarters.
Global Trade Imbalances
The report underscored growing trade imbalances, with the US maintaining the world’s largest trade deficit and China recording the highest surplus.
Also, the European Union, which ran a deficit in previous years, returned to a surplus in 2024, aided by shifts in energy trade.
Bilateral trade imbalances, particularly between the United States and China, remain significant, contributing to global economic uncertainty.
As global trade enters 2025, policymakers face balancing growth with growing protectionism.
