The World Trade Organisation (WTO) recently reported a staggering milestone in global trade, with transactions reaching an incredible $30.4 trillion in 2023. This marks a remarkable fivefold increase since the organization’s establishment in 1994.
In their report, the WTO highlighted the steady growth of world trade in goods and commercial services, averaging 5.8% annually between 1995 and 2023. Notably, trade in commercial services outpaced goods, growing at an average rate of 6.8% per year.
This surge in trade has played a crucial role in reducing poverty worldwide and supporting economic development, as noted by the WTO. Over the past three decades, trade barriers have decreased significantly, leading to improved trade costs and increased global interconnectedness.
Looking ahead, the WTO forecasts a gradual increase in world merchandise trade, with volumes expected to rise by 2.6% in 2024 and 3.3% in 2025. Director-General Ngozi Okonjo-Iweala emphasized the importance of resilient supply chains and multilateral trading frameworks in driving global trade recovery.
Furthermore, the report highlighted the rapid growth of digitally delivered services, which have experienced a fourfold increase in value since 2005. This digital revolution has reshaped global commerce, with exports of digitally delivered services surpassing $4.25 trillion in 2023.
In conclusion, the WTO’s 30-year journey has been marked by unprecedented growth and transformation in global trade. As the world continues to navigate challenges such as geopolitical strife and trade fragmentation, the WTO remains committed to promoting economic growth and stability through trade.