The United Nations Conference on Trade and Development (UNCTAD) released their latest Global Trade Update, and long-story short there is some good news.
First of all, for several quarters international trade flows were contracting, but it looks like things are going to rebound in 2024. Second, some of the globe’s developing regions, Africa included, showed growth in trade during the 4th quarter of 2023, which is a positive sign for some of the world’s most impoverished countries. Third, intra-African trade, which is made up of trade flows between African economies, increased by 6 percent over 2023 – a positive and surprising result given the fact that intra-regional trade in East Asia and Latin America both fell over the past year. These three factors seem to indicate some positive things happening for Africa, and the hope is that they continue to grow in the upcoming year.
These developments are good news for a continent that has been unable to capitalize on the benefits of trade for the last half-century. African trade is being liberalised, and in doing so goods are moving more freely across borders, which is a positive sign for all who want to see Africa prosper. When trade barriers fall, costs lower for consumers while producers gain access to markets – increasing competition and benefiting wide swaths of the population. This report from UNCTAD was encouraging, let’s hope that things continue moving in the right direction this year.
Alexander Jelloian
Alexander Jelloian is the Research and Project Manager at the Initiative for African Trade and Prosperity.
The United Nations Conference on Trade and Development (UNCTAD) released their latest Global Trade Update, and long-story short there is some good news.
First of all, for several quarters international trade flows were contracting, but it looks like things are going to rebound in 2024. Second, some of the globe’s developing regions, Africa included, showed growth in trade during the 4th quarter of 2023, which is a positive sign for some of the world’s most impoverished countries. Third, intra-African trade, which is made up of trade flows between African economies, increased by 6 percent over 2023 – a positive and surprising result given the fact that intra-regional trade in East Asia and Latin America both fell over the past year. These three factors seem to indicate some positive things happening for Africa, and the hope is that they continue to grow in the upcoming year.
These developments are good news for a continent that has been unable to capitalize on the benefits of trade for the last half-century. African trade is being liberalised, and in doing so goods are moving more freely across borders, which is a positive sign for all who want to see Africa prosper. When trade barriers fall, costs lower for consumers while producers gain access to markets – increasing competition and benefiting wide swaths of the population. This report from UNCTAD was encouraging, let’s hope that things continue moving in the right direction this year.
Alexander Jelloian
Alexander Jelloian is the Research and Project Manager at the Initiative for African Trade and Prosperity.