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economictimes.indiatimes.com / 1 year ago
economictimes.indiatimes.com / 1 year ago
India, China outperform global trade in 2024, trade resilience stressed in 2025: UNCTAD
global trade averages in 2024, UN Trade and Development (UNCTAD) said in its Global Trade Update Friday. It said that trends like the widening deficits of the US and EU with China along with India’s rising deficit with Russia amid shifting energy trade could prompt new tariffs, restrictions, or investment shifts, adding to economic uncertainty.
However, it cautioned that trade resilience is under pressure in 2025 and as trade uncertainty grows, global cooperation and balanced policies will be key to preventing economic fragmentation and safeguarding long-term growth.
Noting that protectionism and shifting trade strategies could disrupt global trade and services trade remains strong but goods trade faces uncertainty,
UNCTAD urged balanced policies and multilateral cooperation.
Governments are expanding tariffs, subsidies, and industrial policies, reshaping trade flows.
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“The US, EU and others are increasingly tying trade measures to economic security and climate goals, while China is using stimulus policies to maintain export momentum. This policy realignment is contributing to uncertainty,” UNCTAD said.
Protectionism, other risks
Rising protectionism, particularly in advanced economies, is triggering retaliatory measures such as countermeasures from trading partners in response to trade restrictions and adding trade barriers, according to the report.
In 2024, world trade saw record expansion to $33 trillion in 2024 – up 3.7% from 2023 – driven by developing economies and strong services trade.
“But looking ahead, new risks loom, including trade imbalances, evolving policies, and geopolitical tensions,” it said.
As per the report, trade dependence is also shifting. Economies such as Russia, Viet Nam,
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