Rewritten Title:
Global Trade Grows by $300 Billion Despite Economic Uncertainties – UNCTAD Report
Global Trade Sees Steady Growth Amid Challenges
Despite early signs of slowing growth, global trade expanded by approximately $300 billion in the first half of the year, according to a new report by the United Nations Conference on Trade and Development (UNCTAD).
Economic Uncertainties Cloud Trade Outlook
UNCTAD’s latest report warns that the global trade outlook remains uncertain due to persistent policy instability, geopolitical tensions, and weakening economic growth projections in the second half of the year.
Modest Growth with Rising Prices
Global trade grew by 1.5% in the first quarter, with expectations of a 2% acceleration in the second quarter. Rising prices contributed significantly to the overall trade value, while trade volumes saw only a 1% increase. Commodity prices edged higher in Q1, a trend that continued into Q2.
Services Trade Drives Expansion
Trade in services remained a key growth driver, surging by 9% over the past 12 months. Meanwhile, merchandise trade among major economies fluctuated, with developed nations outpacing developing countries—a reversal of recent trends.
Trade Imbalances Widen
The report attributes this shift to a 14% rise in U.S. imports and a 6% increase in EU exports. The U.S. has seen a growing trade deficit, exacerbating global trade imbalances.
Risks of Trade Fragmentation
UNCTAD highlighted rising threats of trade disruptions, citing recent U.S. tariffs—including a baseline 10% levy and additional duties on steel and aluminum. The report cautioned that further unilateral measures could escalate trade tensions.
The findings underscore the delicate balance between trade growth and economic instability, calling for coordinated international efforts to sustain momentum.
