International organizations expect double global trade growth in 2024
Date
5/12/2024 9:19:17 AM
(MENAFN) According to forecasts from international organizations including the Organization for Economic Cooperation and Development (OECD), the International Monetary Fund (IMF), and the World Trade Organization (WTO), global trade growth is poised to more than double this year. After experiencing a slowdown in 2023 due to factors like rising prices, high interest rates, and weak demand, the global trade flow is expected to witness a significant recovery in 2024. The OECD anticipates a 2.3 percent increase in global trade in goods and services this year, followed by a further acceleration to 3.3 percent growth in 2025, compared to a mere 1 percent growth recorded last year.
Claire Lombardelli, the chief economist at the OECD, attributes much of this anticipated robust growth to a "cyclical recovery," wherein trade expands alongside broader economic growth. She highlights the pivotal role of China and East Asian countries as key drivers of this activity. Already, increased trade has contributed to the growth of some of the European Union's largest economies in the first quarter of 2024. Notably, the euro zone saw overall growth rise by 0.3 percent in the previous quarter, marking the highest growth rate since the third quarter of 2022.
Lombardelli underscores the positive developments observed in trade for the current year and beyond. The strong data indicates a promising outlook for global trade, with significant implications for economic growth and prosperity. As international trade continues to rebound, economies around the world stand to benefit from increased activity and opportunities for expansion.
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