According to a recent update from the Organization for Economic Co-operation and Development (OECD), International Monetary Fund (IMF) and World Trade Organization, global trade is projected to experience a significant rebound this year, with forecasts indicating trade growth will more than double. This comes after a period of slowdown in 2023, which was influenced by high inflation, rising interest rates and sluggish demand. The resurgence in trade is partly attributed to a strong U.S. economy and easing inflation.
For 2024, global trade in goods and services is expected to increase 2.3%, and further growth of 3.3% is anticipated next year. This marks a substantial recovery from last year’s modest 1% growth.
Clare Lombardelli, the chief economist at OECD, highlighted that this positive shift is largely a result of cyclical recovery as trade typically expands in line with broader economic progress. Additionally, China and East Asia are expected to play significant roles in driving this increased trade activity.
