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The latest Global Trade Update published last December by UN Trade and Development (UNCTAD) estimates global trade to reach a record $33 trillion in 2024, led by growth in services trade.

UNCTAD estimates annualised growth in total trade at 3.3%, which represents $1 trillion in value. While trade in services is estimated to grow by 7% in 2024, growth in goods trade is projected at 2%.

According to the agency of the United Nations, the projected growth in trade, while below the post-pandemic peak of 2022, would be achieved despite “persistent” global challenges.

UNCTAD said developing economies, traditionally strong drivers of global trade, faced headwinds in 2024, with imports contracting by 1% and South-South trade falling by the same margin in the third quarter. In contrast, developed economies led Q3 growth, with stable demand driving a 3% rise in imports and 2% in exports.

ICT and apparel trade surged by 13% and 14%, respectively, in Q3 2024. Energy trade fell 2%, metals trade contracted by 3%, and automotive trade dropped 3% in Q3 but is expected to end the year with modest 4% growth.

UNCTAD advises developing countries to diversify their trade for growth. It added that stable global economic growth forecasts and easing inflation also present a chance to build resilience in 2025.