GLOBAL TRADE HITS RECORD HIGH
The UNCTAD’s Global Trade Update, published on 17 February, shows that world trade in goods remained strong in 2021 and trade in services finally returned to its pre-COVID-19 levels. All major trading economies saw imports and exports rise above pre-pandemic levels in the fourth quarter of 2021, with trade in goods increasing more strongly in the developing world than in developed countries.
Overall, the value of global trade reached a record level of $28.5 trillion in 2021,” the report says. That’s an increase of 25% on 2020 and 13% higher compared to 2019, before the COVID-19 pandemic struck. However, the UNCTAD report indicates that trade growth will slow during the first quarter of 2022. Positive growth rates are expected for both trade in goods and services, albeit only marginally, keeping trade values at levels similar to the last three months of 2021. On trade flows, the report projects the trend of regionalization to increase because of various trade agreements and regional initiatives, as well as “increasing reliance of geographically closer suppliers.” Moreover, trade patterns in 2022 are expected to reflect the increasing global demand for products that are environmentally sustainable.
Source: UNCTAD