Photo: Avigator Fortuner/Shutterstock
Trade growth was positive for both goods and services in the first quarter of 2023, according to the UNCTAD’s latest Global Trade Update report. However the UN trade organization suggests a slowdown in global trade growth in the second quarter due to negative factors such as inflation, financial vulnerabilities, the war in Ukraine, and geopolitical tensions.
“Overall, the outlook for global trade in the second half of 2023 is pessimistic, as negative factors dominate the positive,” the report stated.
According to the report, trade in goods increased by 1.9% in the first quarter of 2023, adding $100 billion, while global services trade increased by 2.8%, adding $50 billion compared to the previous quarter.
UNCTAD’s report notes a rise in “friend-shoring” and a decline in diversification of trade partners, implying that global trade has become more concentrated among major trade relationships. It highlights the declining trade interdependence between the United States and China, as well as the impact of the war in Ukraine and Brexit on bilateral trade trends.
The report also shows varying trade performance among major economies and regional trade trends, as well as how various sectors fare. Brazil, India, the United States, and the European Union experienced significant increases in both imports and exports, but on a quarter-over-quarter basis, trade trends for major economies were more subdued between January and March 2023, with the exception of significant growth in exports from China and India.
International trade grew in all regions except for Russia and central Asia in the first quarter, but East Asia’s growth was below average, according to the report. The first quarter of saw a decline in trade value in most regions, except for the Pacific, North America, and Africa, which had marginal growth. Intra-regional trade followed similar patterns, with African trade increasing by 3%.
Meanwhile, the energy sector experienced rising prices and higher trade values until a 11% quarterly drop between January and March 2023. Other sectors that experienced trade increases were agri-food products, apparel, chemicals, and road vehicles. Conversely, trade declined in office and communication equipment, as well as transport, where downward trends continued into the first quarter of 2023.
Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.
Join the 110,164 members that receive our newsletter.
Have a news tip? Let us know.
Container shipping companies like Maersk, CMA CGM and COSCO have ordered hundreds of new vessels in recent years meant to help their industry slash greenhouse gas (GHG) emissions to meet rising demand from customers and regulators around the globe.
The Australian Maritime Safety Authority (AMSA) has issued a 180-day ban on the Netherlands-flagged general cargo ship Marsgracht, prohibiting its entry into Australian ports. The action comes in response to recurring...
The UK’s sanctions enforcement agency said it has identified cases where falsified documents are being used to evade a Group of Seven price cap on Russian oil exports.
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
Sign Up
Maritime and offshore news trusted by our 110,164 members delivered daily straight to your inbox.
Essential news coupled with the finest maritime content sourced from across the globe.
Sign Up
Join The Club
