Economic Buzz: Global trade growth slowed in Q1 of 2025 before rebounding in Q2 of 2025, says UNCTAD

According to Monthly Economic Review report released by the Department of Economic Affairs (DEA), continuing geopolitical tensions have been adding to the uncertainty and complexity of the global trade landscape. Notwithstanding this, global trade growth in goods and services showed resilience in H1 2025, increasing by USD 300 billion. As per UNCTAD's July 2025 update, while global trade growth slowed in Q1 of 2025, it rebounded in Q2 of 2025. Further, developing countries? trade growth lagged behind that of developed countries in Q1 of 2025 despite the former having shown strong performance in recent quarters. Uncertainty has, however, started to come down since April 2025 (when it peaked) as per the Trade Policy Uncertainty Index, which declined by approximately 35 per cent on a month-on-month basis in June 2025.

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