World trade achieves record figure in the first quarter of 2022

“The war in Ukraine is beginning to influence international trade, largely through price increases,” says the UNCTAD report.

Although the behavior of global trade is expected to remain positive, it has slowed down during the second quarter of the year, the Conference noted. The report adds that the increase in interest rates in several countries and the end of economic stimulus packages will have a negative impact on trade volumes in the remainder of the year.

Commodity price volatility and geopolitical issues will also create uncertainty about trade developments.

UNCTAD noted that trade growth in the first quarter of 2022 remained strong across all regions.

The report also shows that most economic sectors recorded substantial increases in the value of their trade.

High fuel prices are behind the increase in the value of trade in the energy sector. In the case of metals and chemicals, it was also above average. On the other hand, trade in transportation and communication equipment was below the levels of last year and 2019.

war in ukraine

The behavior of world trade is likely to be affected by rising interest rates, as well as inflationary pressures and concerns about debt sustainability in many economies, UNCTAD said.

The conflict in Ukraine is already affecting global trade, putting upward pressure on international energy and commodity prices, the report said.

Challenges to global supply chains, regionalization trends, and policies supporting the transition to a greener global economy are also factors expected to factor into global trade.