According to UNCTAD’s Global Trade Update published on February 17th, global trade in goods continued strong in 2021, and trade in services finally returned to the levels of pre-COVID-19. Global trade touched $28.5 trillion which is a record level in 2021, according to the research. This shows a 25% increase over 2020 and a 13% increase over 2019 before the COVID-19 pandemic started.

Overview:

While the majority of global trade growth occurred in the first half of 2021, it continued in the second half of the year. After a slow third quarter, trade growth accelerated in the fourth quarter, with goods trade increasing by about USD 200 billion to USD 5.8 trillion. Meanwhile, service trade increased by USD 50 billion to USD1.6 trillion, which is slightly higher than pre-pandemic levels.

What does the report show?

• According to the report, imports and exports in all major trade economies rose sharply over pre-pandemic levels in the fourth quarter of 2021. However, goods trade increased more quickly in developing countries than in developed countries.
• Exports of underdeveloped countries increased by roughly 30% compared to the same period in 2020, compared to 15% for wealthy nations.
• As commodity prices rose, growth was faster in commodity-exporting regions. Also, with a 32 percent year-on-year gain, trade grew faster than the global average.
• With the exception of transportation equipment, all economic sectors had significant growth in the value of their trade in the fourth quarter of 2021.

By: Brijesh Kumar