In its report, the UN Conference on Trade and Development (UNCTAD) said that world trade will decline by 5% in 2023 compared to last year. The organization predicts that world trade will amount to approximately $30.7T. Trade in goods is expected to decline by nearly $2T, or 8%. However, trade in services worldwide should grow by approximately $500B, or 7%. Insufficient export efficiency from developing countries partly explains the reduction in world trade.
“During 2023, world trade experienced a decline, mainly due to reduced demand in developed countries, low performance in East Asian economies, and lower commodity prices. These factors together contributed to a marked reduction in trade in goods,” the organization said.
UNCTAD noted that the 2024 forecast for world trade remains highly uncertain and generally pessimistic. The organization concludes that persistent geopolitical tensions, high levels of debt, and widespread economic instability are expected to impact global trade patterns negatively.