Global trade hits record $33tn in 2024, growing by 3.7pc

RIYADH, Mar 16 (Arab News): Global trade reached a record high of $33 trillion in 2024, marking a 3.7 per cent increase from the previous year, driven by an uptick in the services sector.
According to the latest Global Trade Update from the UN Conference on Trade and Development, services drove growth, rising 9 per cent for the year and adding $700 billion - nearly 60 per cent of total exchange expansion.
Meanwhile, trade in goods grew 2 per cent, contributing $500 billion.
"This positive momentum is expected to continue into Q1 (first quarter) 2025, building on a global trade value of nearly $33 trillion in 2024," the report said.
UNCTAD's analysis highlighted a continued shift in global trade dynamics, with developing countries - particularly China and India - outperforming their developed counterparts.
While many advanced economies faced exchange contractions, emerging markets sustained momentum, bolstered by strong exports and domestic demand.
China's trade surplus expanded significantly in 2024, fueled by robust exports. Meanwhile, the US trade deficit widened, reflecting its growing reliance on imports. South-South trade, involving exchanges between developing economies, remained a key driver of global trade growth.
Services trade outpaced goods trade in 2024, increasing by 9 per cent and contributing approximately $700 billion to global exchange expansion. This sector's resilience contrasts with goods trade, which rose by just 2 per cent, adding around $500 billion. The fourth quarter saw services trade maintain strong momentum, while goods trade growth decelerated.
Despite overall growth, UNCTAD warns of significant trade barriers. High tariffs continue to hinder market access for developing countries, particularly in agriculture and manufacturing.
"High import tariffs raise costs for businesses and consumers, potentially curbing growth and competitiveness," the report said.
It added that tariff escalation - where higher duties are imposed on processed goods than raw materials - remains a major obstacle to industrialisation in developing economies.
Agricultural exports from developing countries still face steep import duties, averaging nearly 20 per cent under most-favored-nation treatment.