As Global Trade Faces 5 Per Cent Contraction In 2023, India Shows Resilience With Impressive GDP Growth

In its recent report, the United Nations Conference on Trade and Development (UNCTAD) has projected a 5 per cent contraction in global trade for 2023.

The decline is attributed to various factors, including high borrowing costs affecting economies, disruptions in supply chains due to US-China tensions, and the emergence of policies restricting cross-border commerce.

This is expected to bring the total value of goods and services traded to $30.7 trillion, down from $32.2 trillion in the previous year, reported Economic Times.

UNCTAD also identifies a significant $2 trillion (8 per cent) slump in merchandise trade as the primary contributor to the overall decline.

The report underscores the prevailing uncertainty and pessimism in the global trade outlook for 2023, citing persistent geopolitical tensions, elevated debt levels, and widespread economic fragility as key factors influencing trade patterns.

This news comes at a time when India's gross domestic product (GDP) for the second quarter of the ongoing financial year recorded an impressive acceleration, reaching 7.6 per cent.

This positive growth trajectory contributes to the resilience of the Indian economy amidst global challenges.