Global trade is on track to hit a record $33 trillion in 2024.

Global trade is poised to hit an all-time high of nearly $33 trillion in 2024, up $1 trillion from the previous year.

This 3.3% annual growth has been driven largely by a 7% rise in trade in services, contributing $500 billion to the overall expansion.  Trade in goods has grown at a slower 2% this year, remaining below its 2022 peak.

Both sectors saw trade values rise in the third quarter, with momentum expected to carry into the year’s final quarter.

Developed countries outpaced developing nations in third quarter trade growth.

In the third quarter of 2024, developed economies led global trade growth, supported by stable demand and improving business conditions.  Imports for this group grew 3% for the quarter, while exports increased 2%.

·Japan recorded the strongest quarterly growth in goods exports (5%) and the highest annual rise in services exports (13%).

·The United States saw merchandise imports rise 4% both quarterly and annually, with exports increasing 2% on the year and 1% in the quarter.

·The European Union maintained robust growth in services trade, with both imports and exports expected to stay positive for the year.

By contrast, developing regions struggled during the same period.  Imports fell 1% for the quarter, while rose by just 1%.  Trade between developing countries, known as South-South trade, dropped 1% for the quarter, reversing earlier trends.  However, developing countries’ trade remained positive on an annual basis, growing by about 3%.

·China saw goods imports decline 1% for the quarter and goods exports fall 2%, while services imports dropped 1% for the quarter.  However, services exports continued to grow, up 9% quarterly and 9% annually, with services imports rising 17% for the year.

·India posted declines of 1% in goods imports and 3% in goods exports for the quarter but saw services imports and exports both increase by 1%.  On the year, goods imports rose 4%, while exports grew 2%.

·East Asia’s trade stalled, with no growth in imports and a mere 1% rise in exports for the quarter.