International trade soared to a record high of $33 trillion in 2024

Global trade hit a record $33 trillion in 2024, expanding 3.7 per cent ($1.2 trillion), according to the latest Global Trade Update by UN Trade and Development (UNCTAD), which warns that while trade remains strong, uncertainty looms in 2025.

Services drove growth, rising 9 per cent for the year and adding $700 billion - nearly 60 per cent of the total growth.

Trade in goods grew 2 per cent, contributing $500 billion. But looking ahead, new risks loom, including trade imbalances, evolving policies, and geopolitical tensions.

The gap between developing and advanced economies is widening. Asia and Latin America remain key trade drivers, but growth has slowed in many advanced economies. South-South trade is holding up, yet Africa’s intra-regional trade is shrinking, reversing gains.

Meanwhile, trade between Europe and Central Asia has declined, reflecting shifting demand.

Governments are expanding tariffs, subsidies, and industrial policies, reshaping trade flows. The United States, European Union (EU) and others are increasingly tying trade measures to economic security and climate goals, while China is using stimulus policies to maintain export momentum.

Meanwhile, industrial policies (long-term strategies to develop specific sectors) are reshaping key sectors like clean energy, technology and critical raw materials, risking competition distortion.

The challenge in 2025 is to prevent global fragmentation - where nations form isolated trade blocs - while managing policy shifts without undermining long-term growth. The actions taken now by governments and businesses will shape trade resilience for years to come.

International Debt Management Conference to discuss ways to manage public debt without stalling development Governments are grappling with soaring debt costs that are squeezing public finances and stalling development.

As the world heads toward the 4th International Conference on Financing for Development (FfD4), UN Trade and Development’s (UNCTAD) biennial debt conference will set the stage for urgent solutions.

The 14th International Debt Management Conference, set for March 17 to 19, in Geneva, will be a platform to discuss and share experiences on critical developments and challenges facing developing countries, when it comes to managing public debt in the current global economic context.

It will gather governments, senior debt managers, academia, businesses, civil society and international organisations, to tackle one of the biggest economic challenges of our time: how to manage public debt without stalling development.

Following the event, UN Trade and Development’s Debt Management and Financial Analysis System (DMFAS) advisory group will meet to review capacity-building efforts and set strategic priorities for debt management worldwide.

DMFAS has been a key player in this space for over 45 years, helping more than 75 governments develop sound debt management systems to improve transparency, governance, and economic stability.

The conference will highlight strategies to prevent debt distress while ensuring sustainable development.

While public debt is a critical tool for development, rising debt-service costs are straining government budgets, leaving little room for essential investments.

Today, many developing countries are sinking into a debt-driven development crisis, with their external debt hitting a record $11.4 trillion in 2023 - 99 per cent of their export earnings.

The conference will analyse the key drivers behind today’s debt crisis and explore ways to strengthen resilience and risk management.

It will also help shape the global agenda on financing for development - of which debt is a critical element - ahead of the UN-led FfD4 conference in mid-2025.

Global trade hit a record $33 trillion in 2024, growing by 3.7 per cent ($1.2 trillion). Most regions saw positive growth, except for Europe and Central Asia.

Services led the expansion, growing 9 per cent annually and adding $700 billion (nearly 60 per cent of the total growth). Trade in goods grew 2 per cent, contributing $500 billion. However, overall trade growth slowed in the second half of 2024, with trade in goods growing less than 0.5 per cent and services just 1 per cent in the fourth quarter.

Developing economies outpaced developed nations, with imports and exports rising 4 per cent for the year and 2 per cent in the fourth quarter, driven mainly by East and South Asia.

Meanwhile, developed economies saw their trade stagnate for the year and drop by 2 per cent in the last quarter.