The potential of trade as a tool for development was brought into sharp relief in a recent report released by the United Nations Conference on Trade and Development (Unctad) which revealed that merchandise exports represented more than twice the global combined inflows of foreign direct investment and aid.
The report highlights the persistent challenge faced by developing countries whose imports far outweigh exports – an issue that it believes requires urgent policy attention.
According to the report, 20 exporting countries – mainly developed economies – accounted for 71% of world exports in 2014 while 78 developing countries faced persistent trade deficits.
World trade increased by a 3.2% in 2014, and is expected to grow by 3.8% and 4.8% in 2015 and 2016.
