International trade soared to a record high of $33 trillion in 2024

Global trade hit a record $33 trillion in 2024, expanding 3.7 per cent ($1.2 trillion), according to the latest Global Trade Update by UN Trade and Development (UNCTAD), which warns that while trade remains strong, uncertainty looms in 2025.

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Services drove growth, rising 9 per cent for the year and adding $700 billion - nearly 60 per cent of the total growth.

Trade in goods grew 2 per cent, contributing $500 billion. But looking ahead, new risks loom, including trade imbalances, evolving policies, and geopolitical tensions.

The gap between developing and advanced economies is widening. Asia and Latin America remain key trade drivers, but growth has slowed in many advanced economies. South-South trade is holding up, yet Africa's intra-regional trade is shrinking, reversing gains.

Meanwhile, trade between Europe and Central Asia has declined, reflecting shifting demand.

Governments are expanding tariffs, subsidies, and industrial policies, reshaping trade flows.

The United States, European Union (EU) and others are increasingly tying trade measures to economic security and climate goals, while China is using stimulus policies to maintain export momentum.

Meanwhile, industrial policies (long-term strategies to develop specific sectors) are reshaping key sectors like clean energy, technology and critical raw materials, risking competition distortion.