Report: India-China trade grew in the last quarter, trade contracted in many developed countries

Developing economies including China and India expanded trade at a rate superior to the average in the third quarter of 2024, as indicated by a report by the world organization. The report warned, nonetheless, of the possibility of an economic downturn in the world in the coming quarters. In this context, in those economies in the developing world including China and India, trade expanded but in most developed economies contracted.

The latest global trade report by the United Nations Conference on Trade and Development (UNCTAD) indicated that global trade in 2024 totaled $33,000 billion with a rise of approximately $1,200 billion or nine percent. This report only goes up to the start of March. It indicated China and India to have had strong trade momentum in the fourth quarter of 2024 and the US as a leading propulsive force. Merchandise trade between major economies had mixed trends in the fourth quarter of 2024. China-India trade and exports specifically continued to rise.

In the US, import growth remained healthy in the fourth quarter of 2024, while export growth decelerated. India recorded 8% quarterly and 6% annual import growth in merchandise trade in the fourth quarter of 2024. Quarterly exports grew 7% and exports grew 2% annually.

Service trade continued to grow in the fourth quarter of 2024. This indicates that the positive trend in service trade may be stabilizing for most economies. Service trade growth remained strong for India and South Africa. Service trade growth reached double-digit figures for many of the largest developing economies on an annual basis.