Post by : Badri Ariffin

Arab merchandise and service trade surged by 4.5% in 2024, exceeding $3.6 trillion, fueled by steady growth in exports and a sharper rise in imports. Exports reached $1.9 trillion, up 1.7%, while imports climbed 7.8% to over $1.7 trillion, narrowing the surplus in the trade balance.

Merchandise trade alone grew more than 5% to $2.8 trillion. Commodity exports inched up 0.3% to $1.5 trillion, while imports jumped 11% to exceed $1.3 trillion, reflecting a regional shift toward higher consumption of manufactured goods. Despite the growth, the trade surplus fell 43% to $167 billion.

Arab countries now account for 5.6% of global merchandise trade and 13.1% of trade in developing nations. Raw materials dominated exports, making up 73%, with fuel alone contributing 54% of total merchandise exports. Manufactured goods led imports, representing 64% of the total, highlighting ongoing industrial and consumer demand.

Trade remained geographically concentrated, with three Gulf nations, Egypt, and Iraq responsible for 76% of merchandise trade. The UAE alone contributed over 40%, underscoring its central role in regional commerce. China maintained its position as the largest trading partner, accounting for 16% of total Arab trade.

Inter-Arab trade strengthened significantly, rising 16.6% to exceed $250 billion, or 9% of total Arab trade. This growth was largely concentrated among the Gulf countries, Egypt, and Iraq, which together accounted for 88% of inter-Arab exchanges.

Trade performance indicators presented a mixed picture. While openness, export diversity, and fleet capacity improved, indicators of export capacity and maritime connectivity showed slight declines, accompanied by growing reliance on imports.

The data reflects a region balancing robust trade expansion with evolving economic priorities, highlighting both opportunities for growth and challenges in connectivity and self-reliance.

#Global #News, #Economic