Global trade surged, reaching a record $7.7 trillion in the first quarter of 2022

Transporting goods by container

 
The value of global trade in the first quarter of 2022 reached $7.7 trillion, an increase of approximately $1 trillion year-on-year, according to the United Nations Conference on Trade and Development - UNCTAD).

The growth, representing an increase of about $250 million from the immediately preceding quarter, was driven by higher commodity prices while trade volumes increased to a much lesser extent.

UNCTAD said that although it is expected to continue to be positive, trade growth will continue to slow down in the second quarter of this year.

"The war in Ukraine is starting to influence international trade, largely through increases in prices," said UNCTAD's global trade report on July 7.

The report adds that rate hikes and cuts in economic stimulus are likely to negatively impact trade volumes for the remainder of 2022.

Both commodity price volatility and geopolitical factors will also continue to make trade developments uncertain.

According to the report, trade growth in the first quarter of 2022 remained strong, although somewhat lower in East Asia and the Pacific.

At the same time, overall export growth was stronger in commodity-exporting regions due to higher commodity prices.

Trade for merchandise goods reached $6.1 trillion, an increase of about 25% year-on-year and about 3.6% compared to the fourth quarter of 2021. Export value of goods from developing countries is 25% higher than the same period last year. Meanwhile, this figure in developed countries is about 14%.

Trade for services in the first quarter of 2022 reached about 1.6 trillion USD, an increase of about 22% compared to the same period in 2021 and an increase of about 1.7% compared to the fourth quarter of 2021. The report shows that most economic sectors recorded significant growth in transaction value compared to the same period last year.

Global trade increased sharply, reaching $7.7 trillion in the first quarter of 2022 (Source: UNCTAD)

The strong increase in trade value in the energy sector was attributed to high fuel prices, while trade growth was also above average for metals and chemicals.

On the other hand, trade in transport and communication equipment is lower than in 2021 and 2019.

UNCTAD reports that global trade developments for the remainder of 2022 could be influenced by slower-than-expected economic growth due to rising interest rates, inflationary pressures and concerns about debt sustainability in many economies.

In the short term, rising food and energy prices will likely lead to higher trade values ​​and slightly lower trade volumes.

Other factors expected to affect global trade this year include wars, as mentioned above, ongoing challenges in global supply chains, trends in regionalization and policies to support the transition to a greener global economy.

See more:

• Profit of shipping lines reached 43.9 billion USD in Q1-2022
• Asian countries have stalled import-export trade and  container shipping with Russia

Source: Phaata.com (According to UNCTAD)

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