‘Seun Ibukun-Oni


DAILY COURIER – The value of global trade rose to a record $7.7 trillion in the first quarter of this year, an increase of about $1 trillion relative to Q 1 of 2021, according to United Nations Conference on Trade and Development’s (UNCTAD) Global Trade Update.

The growth, which represents a rise of about $250 million relative to the fourth quarter of last year, is fuelled by rising commodity prices, as trade volumes have increased to a much lower extent.

Trade growth has continued to slow during the second quarter of the year, though expected to remain positive.

“The war in Ukraine is starting to influence international trade, largely through increases in prices,” the report said.

It added that rising interest rates and the winding down of economic stimulus packages will likely have a negative impact on trade volumes for the rest of this year.

Volatility in commodity prices and geopolitical factors will also continue to make trade developments uncertain.

According to the report, trade growth rates in first quarter of this year remained strong across all geographic regions, although somewhat lower in the East Asia and Pacific regions.

Export growth has been generally stronger in commodity-exporting regions, as commodity prices have increased.

Trade in merchandise goods reached about $6.1 trillion, an increase of about 25 per cent, relative to the first quarter of last year, and a jump of about 3.6 per cent relative to four quarter of last year.