Page 9 - Policy Economic Report_Mar'25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

projected to be lowered further, but to a greater extent in the lighter tariff scenario, with stronger
pressures from higher import costs offset by the weaker economy.

Figure 4: G20 headline inflation

Source- OECD

Global trade

According to the latest Global Trade Update by UN Trade and Development (UNCTAD), covering data
through early March, signals a shifting landscape. In 2024, world trade saw record expansion to $33
trillion in 2024 – up 3.7% from 2023 – driven by developing economies and strong services trade. But
looking ahead, new risks loom, including trade imbalances, evolving policies, and geopolitical tensions.

Key trade facts and figures: -

? Global trade hit a record $33 trillion in 2024, growing by 3.7% ($1.2 trillion). Most regions saw
growth, except for Europe and Central Asia.

? Services led the expansion in 2024, growing 9% annually and adding $700 billion (nearly 60% of
the total growth). Trade in goods grew at a slower 2%, contributing $500 billion. However,
growth in both sectors slowed in the second half of 2024, with services growing just 1% and
goods less than 0.5% in the fourth quarter.

? Developing economies’ trade grew faster. Their imports and exports rose 4% for the year and
2% in the fourth quarter, driven mainly by East and South Asia. Meanwhile, developed
economies saw their trade stagnate for the year and drop by 2% in the fourth quarter.

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