UNCTAD’s Global Trade Update (March 2024): Global Trade Set to Rebound in 2024

Current Context: The United Nations Conference on Trade and Development (UNCTAD) released its Global Trade Update in March 2024, which provides an overview of the global trade scenario.

• Here are the key highlights:
• Global Trade in 2023: The value of global trade fell by 3% in 2023. For trade in goods, it dropped by 5% but grew by 8% for trade in services.
• Trade of Developing Countries: During 2023, the trade of developing countries and South-South trade performed worse than global averages.
• Trade in Environmental Products: Trade in environmental products grew in 2023, with electric cars sparking trade growth in motor vehicles.
• Outlook for 2024: The outlook for 2024 is positive, but geopolitical issues and shipping disruptions increase uncertainties.
• 2023: A Challenging Year for Trade: Global trade dipped 3% to $31 trillion in 2023 after peaking in 2022.
• Trade in Services: Trade in services bucked the negative trend, growing by 8%. The sector was fuelled by a nearly 40% surge in tourism and travel-related services.
• Developing Countries: Developing countries experienced a sharper decline in trade, with their imports and exports falling by 5% and 7%, respectively.
• Electric Cars: Despite the overall decline, 2023 saw a 2% rise in trade for environmental products, driven primarily by soaring electric car sales.
• End 2023: Signs of Stabilization: The final quarter of 2023 brought signs of stabilization, particularly in developing regions.
• Looking Ahead to 2024: The forecast for 2024 is broadly positive, with GDP growth expected to continue at around 3%.

Question:

Q.1 What was the trend of global trade in 2023?
a. It increased by 3%
b. It increased by 5%
c. It remained the same
d. It decreased by 3%