Global trade may reach almost $32 trn in 2024: RBI Bulletin

Global economic activity appears to be strengthening across advanced economies (AEs) and emerging market economies (EMEs) and global trade in goods and services is gathering momentum, it noted.

In terms of purchasing managers’ indices, EMEs continued to outperform AEs for a second straight year, with India ahead of the rest on the back of robust growth expectations.

Monetary policy divergence is setting the tone for global economic developments. Labour markets are easing from historically tight conditions and wage growth is slowing, the article noted.

While there is a regaining of pace in global merchandise trade, the robust upsurge in services trade appears to be getting over.

Prices for traded goods are also ticking up, with faster growth in values than in volumes.

Despite this uptick, the annual change in the price of traded goods is expected to remain negative.

Persisting geopolitical tensions, rising shipping costs and muscular industrial policies remain downside risks, the article said.

In India, the second quarter of fiscal 2024-25 has begun with signs of quickening momentum in the economy.

The improvement in the outlook for agriculture and the revival of rural spending in India have turned out to be the bright spots in the evolution of demand conditions.

Consumer price inflation in India ticked up in June this year after three consecutive months of moderation.

Fibre2Fashion News Desk (DS)