The UN trade facilitation agency has said global trade is set to hit a record high of $32 trillion for 2022, but inflation has reversed some of the gains made in recent months.
The global growth turned negative during the second half of 2022, UNCTAD added.
“Trade in goods and services is expected to reach $25 trillion and $7 trillion, respectively, by the end of the year. The downturn began in the third quarter of the year, with goods trading about one percent lower than from March to May,” the UN agency said.
Although services increased by 1.3 percent in the third quarter, both goods and services are expected to fall in value in the run-up to the end of the year, according to the latest global trade update of UNCTAD.
Demand for foreign goods proved resilient through 2022, with trade volumes overall increasing by three percent.
Trade volumes of east Asian economies have shown resilience, while South-South trade lagged during the third quarter.
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Overall, geopolitical frictions, persisting inflation, and lower global demand are expected to negatively affect global trade during 2023, UNCTAD said.
Source: United News of Bangladesh