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Developed economies rush to trade

July 31, 2025

According to data from the United Nations Conference on Trade and Development (UNCTAD), world trade grew by 3.5% year-on-year in Q1 2025. Analysts are recording a new trend: rather than developing economies, it is developed economies that are making the main contribution to growth by boosting supplies amid concerns over U.S. President Donald Trump’s economic policy.

UNCTAD notes that the first quarter saw a sharp increase in U.S. imports and a pick-up in EU’s exports. South–South trade (between developing countries) was trending downwards in January–March, with the exception of Southeast Asia, which includes China.

Preliminary estimates suggest that the trend will continue into the second quarter. Analysts view the strengthening of protectionism by both developed and developing economies as a major issue: countries are actively rolling out policies to support their domestic manufacturing sectors.

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