Lower costs for goods affected by high inflation a year ago is also a reason for the decline. “Even though the value of traded goods decreased in 2023, the slightly positive trend in the volume of international trade suggests a resilient global demand for imported products,” the report said.
UNCTAD noted how countries aligned geopolitically are trading more with each other while those in disagreement are trading less bilaterally. That divergence among several issues clouding the outlook for next year, the agency said.
“The forecast for global trade remains highly uncertain and generally pessimistic,” the report said. “While certain economic indicators hint at potential improvements, persistent geopolitical tensions, high levels of debt, and widespread economic fragility are anticipated to exert negative influences on global trade patterns.”
