India and China Outshine Global Trade Growth in 2024: UNCTAD

China and India have surpassed global trade growth averages in 2024, according to the UN Trade and Development (UNCTAD) Global Trade Update released on Friday. The report highlighted emerging trade trends, including the widening trade deficits of the US and EU with China, as well as India's increasing deficit with Russia due to shifting energy trade patterns. These developments, it warned, could lead to new tariffs, trade restrictions, or changes in investment flows, heightening economic uncertainty.

Looking ahead to 2025, UNCTAD cautioned that global trade resilience remains under pressure. It emphasized the need for multilateral cooperation and balanced policies to mitigate trade uncertainty, prevent economic fragmentation, and ensure long-term economic stability.

The report noted that while services trade continues to show strength, goods trade faces growing uncertainty. It urged governments to adopt measured policies to avoid disruptions caused by protectionist measures and shifting trade strategies.

Governments worldwide are expanding tariffs, subsidies, and industrial policies, reshaping trade dynamics.

“The US, EU and others are increasingly tying trade measures to economic security and climate goals, while China is using stimulus policies to maintain export momentum. This policy realignment is contributing to uncertainty,” UNCTAD stated.