China and India Lead International Trade Averages in 2024: UNCTAD Global Trade Update
During 2024, China and India were leading performers of international trade, beating international trade growth averages. Both countries posted healthy trade activities, according to the United Nations Conference on Trade and Development's (UNCTAD) Global Trade Update, playing a key role in world economic activity. cite turn0search
International trade hit record levels in 2024, with trade values reaching almost $33 trillion, a $1 trillion jump from the prior year. The 3.3% yearly increase was fueled mostly by a 7% rise in trade in services, contributing about $500 billion to the overall growth. Goods trade, on the other hand, saw a low 2% increase, staying below its level in 2022. citeturn0search0
China's Trade Performance
China's trade surplus expanded significantly in 2024, a witness to its dominance of world manufacturing and exports. China's share of world industrial production rose to 27% and is poised to hit 45% by 2030. Defying Western tariffs to halt its manufacturing dominance, China's trade surplus reached almost $1 trillion, a witness to its resilience and strategic economic strategy. citeturn0news34
India's Trade Dynamics
India also indicated impressive growth in commerce, both imports and exports increasing enormously. Economic reforms and trade policy have positioned India as one of the most robust international trade players. Raising India's trade deficit with Russia, primarily because of shifting trends in energy trade, has put the economic stability at risk in the future. citeturn0search2
Trade Imbalances and Emerging Risks
The widening trade deficits of the United States and the European Union with China and India's widening deficit with Russia added new volatility to global economic stability. These imbalances can lead to new tariffs, restrictions, or shifts in patterns of investment, thereby heightening economic uncertainty. citeturn0search2
Industrial Policies and Protectionist Measures
Governments worldwide are increasingly turning to protectionist policy, including tariffs, subsidies, and industrial policies, to safeguard strategic industries like clean energy, technology, and strategic raw materials. Since such policies are designed to support domestic industries, they do indeed risk creating distorted competition and future trade tensions. citeturn0search2
The Role of Services Trade
Despite the uncertainty in goods trade, services trade has remained robust and contributed significantly to world trade growth. The 7% growth of 2024's services trade confirms the strength and vitality of the sector as well as the sector's significance in the world economies. citeturn0search0
2025 Outlook
UNCTAD warns that the resilience of global trade in 2024 may be tested in 2025. The organization emphasizes strengthening global coordination and the pursuit of balanced policies to contain economic fragmentation and foster sustained growth. citeturn0search2
Conclusion
The 2024 trade performances of India and China are a reflection of the evolving nature of the global economy. As countries navigate the challenges of protectionism, trade imbalances, and shifting industrial policies, international cooperation and strategic planning will be key to maintaining economic stability and growth in the ensuing years.
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