Between prices and the Red Sea: Global clothing trade will decline by 10% in 2023

Clothing and textile trade is declining. Recorded global clothing trade 10% decline in value during 2023, victim of various political and logistical disruptions (such as Houthi rebel attacks in the Red Sea) and rising inflation. That stood out last year. Despite this decline, global trade is still 5% higher than in 2019, the year before the outbreak of the pandemic.

“While the economic impact of Suez Canal disruptions caused by the conflict in the Middle East has been relatively limited so far, some sectors – such as retail trade – have already been affected by delays and increased shipping costs,” the WTO says in its latest annual report.

The value of global textile trade also decreased compared to the previous year, and recorded a greater decline of 13%. Compared to 2019 figures, trade in textile products remained stable. This was made clear in the latest WTO report, which published an analysis of international trade through 2023 and forecasts for this year.

According to the report's expectations. Declines in fashion and textile trade have followed the pattern of declines in global trade Of the goods that recorded a general contraction in their value in 2023, 5%, reaching $24.01 trillion. This decline could have been greater had it not been for the support achieved by the services sector, whose value rose by 9% during the year, reaching $7.54 trillion.

Despite the decline in 2023, international apparel trade remains above the epidemic level

In terms of volume, global trade also declined slightly, recording a 1.2% decline during the year, mainly due to High energy prices and inflation, which had a “significant” impact on demand throughout 2023. However, looking to the coming years, the entity expects a slight recovery, with trade gradually rebounding by 2.6% in 2024 and up to 3.3% in 2025.

He added: “We are moving towards a recovery in global trade, thanks.” On the resilience of supply chains and a strong multilateral trade framework“It is fundamental to improving livelihoods and well-being,” said WTO Director-General Ngozi Okonjo-Iweala.

Despite the decline in trade in 2023The entity has highlighted the sector's resilience in recent yearswhich, though Shocks Economically, it managed to grow by 6.3% in volume compared to pre-pandemic numbers. In addition, during the last quarter of the year, global trade remained at levels roughly similar to 2022 figures (0.1% more) and rose slightly compared to 2022 (0.5%).

The organization also expects this Global GDP is expected to rise by 2.4% in 2024 And 2.7% in 2025. This growth contrasts with the contraction in global GDP witnessed in 2023, which fell by 2.7%, and reaches 3.1% in 2022.

Despite the good expectations for the coming years,… The World Trade Organization warned of the possibility of a downward review of declared values Due to regional conflicts, various geopolitical tensions and economic policies. “It is essential that we mitigate risks such as geopolitical conflicts and trade fragmentation to maintain economic growth and stability,” Okonjo-Iweala said.