New risks loom for global trade, warns UN body

A container ship at the Mombasa Port in Kenya, a key transit for trade in the region. © UNDP-Tamara Tschentscher

While global trade started 2025 on stable ground, challenges are mounting, according to the UN trade and development body, UNCTAD.

In its latest Global Trade Update, which covers data through early March, the UN body reported record growth in 2024, with international trade expanding to $33 trillion, but looking to 2025, new risks loom, including trade imbalances, evolving policies and geopolitical tensions.

The trade gap between developing and advanced economies is widening. While Asia and Latin America remain key trade drivers, growth has slowed in advanced economies, UNCTAD said.

It added that nearshoring and friendshoring – business strategies where companies relocate their operations to a country geographically closer to their main market to reduce costs – reversed in 2024.

UNCTAD noted that some governments are expanding tariffs, subsidies and industrial policies, reshaping trade flows.

“The United States, EU and others are increasingly tying trade measures to economic security and climate goals while China is using stimulus policies to maintain export momentum,” it added.

UNCTAD underscored the need for global cooperation and balanced policies in the face of growing trade uncertainty.

“The challenge in 2025 is to prevent global fragmentation – where nations form isolated trade blocs – while managing policy shifts without undermining long-term growth. The actions taken now by governments and businesses will shape trade resilience for years to come,” it said. – UN News