Global Goods Trade Goes Up 12.5 PC on Higher Energy, Commodity and Logistics Costs

Chennai: Global goods trade went up 12.5 per cent to approximately $13.7 trillion in the first half of 2026, as higher energy, commodity and shipping and logistics costs inflated export revenues. While several Asian economies saw growth in exports in the March quarter, India experienced a sharp decline of 8 per cent, finds the UN's trade and development body.

Service trade grew at a slower pace, expanding by 10.5 per cent compared with the first half of 2025. Together, goods and services added around US$2 trillion to global trade, putting it on course for a record annual value.

A significant share of the export revenue growth was due to higher prices rather than stronger trade volumes. Disruptions to shipping through the Strait of Hormuz, together with concerns over energy supplies, raised energy, transport, logistics and production costs.

Prices of traded goods increased by about 3.6 per cent in the first quarter and are estimated to have risen by about 5 per cent in the second, largely reflecting higher energy and selected commodity prices.

Across major economies, East Asian economies outperformed their peers in goods trade during the first quarter of 2026. South Korea recorded the strongest growth of 20 per cent in exports, followed by China at 11 per cent. In contrast, India experienced a sharp decline of 8 per cent in the March quarter. Japan, South Africa, and the United States also posted robust export growth.

Services trade growth was mixed in the first quarter of 2026. On the import side, services imports declined in India, South Korea, and Russia, while Brazil and the European Union recorded increases. Services trade in the remaining major economies remained broadly unchanged compared with the previous quarter.

Strong demand for AI-related products, semiconductors, batteries and electric-vehicle components is expected to remain an important driver of trade growth in the second half of 2026.