The volume of world merchandise trade experienced a notable increase in the first quarter (Q1) of 2024 after a stagnant 2023, according to the latest statistics released by the World Trade Organization (WTO). Merchandise trade, measured by the average of exports and imports, rose by 1 per cent in the first quarter compared to the previous quarter. Additionally, trade in the first quarter was up 1.4 per cent compared to the same period in 2023.

This positive trend in trade volume was driven by contributions from most regions, with Europe being a significant exception as its exports and imports continued to decline. These statistics are the first quarterly trade volume figures released by the WTO since its most recent trade forecast was issued on 10 April in the organisation's Global Trade Outlook and Statistics report.

In the April report, WTO economists projected that the world merchandise trade volume would grow by 2.6 per cent in 2024 and 3.3 per cent in 2025. The 1 per cent increase in the first quarter aligns broadly with these projections. If the current pace of expansion continues through the end of the year, the trade volume for the whole of 2024 will be 2.7 per cent higher than in 2023.

Despite the increase in trade volume, the US dollar value of world merchandise trade declined by 2 per cent year-on-year in the first quarter of 2024. This discrepancy between rising trade volumes and falling trade values suggests that export and import prices decreased during this period.

Fibre2Fashion News Desk (DP)