UN body says global trade will fall 5% this year
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The news: Global trade is on track to shrink by 5% during 2023, according to The United Nations Conference on Trade and Development (UNCTAD).
The numbers: UNCTAD projects that commerce is likely to amount to USD30.7 trillion ($46.81 trillion) in 2023, a contraction of about USD1.5 trillion compared to 2022’s record high.
The context: The UN trade body explained that the reason for the contraction is likely due to a combination of macroeconomic factors including high borrowing costs and geopolitical tensions impacting supply chains.
What they said: “The forecast for global trade remains highly uncertain and generally pessimistic."
"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"
The source: UNCTAD
