The Strategist

UNCTAD: world trade falls by five percent in 2023

12/12/2023 - 09:13

According to a research posted on the website of the United Nations Conference on Trade and Development (UNCTAD), geopolitical tensions have contributed to the decline in global trade, which has decreased by 5% in 2023 from its peak level in 2022 to approximately $30.7 trillion.

Daniel Foster
Daniel Foster
"World trade in 2023 will be approximately $30.7 trillion, a decline of about $1.5 trillion (or 5 percent) from the record high of 2022," the report reads.

Global trade is reportedly being negatively impacted by geopolitical tensions, particularly the declining interdependence between China and the US, according to UNCTAD estimates.

"It is anticipated that global commerce in services would rise by $500 billion in 2023, while global trade in products will fall by almost two trillion dollars. The research stated that trade in East Asia has stayed below average, South-South trade has dramatically fallen, and export performance in developing countries has been weak.

The UN expects 2024 to be "still unclear but generally pessimistic."