Trade surplus of developing economies increased in 2022

By Monica Muema and Agencies

The trade surplus of developing economies grew, especially in Africa, according to the latest analysis by the UN.

Published annually, the Handbook of Statistics 2022 – the global reference for trade and development trends by UNCTAD, noted that the increase was mirrored by a widening trade deficit for developed economies.

Developing countries traded more with developed nations ($8 trillion) than among themselves ($5.4 trillion). Trade between developed nations was slightly higher at $8.5 trillion.

“Timely and quality data are critical now more than ever as concurrent global crises test our resilience,” UNCTAD Secretary-General Rebeca Grynspan said. “These statistics will help countries take evidence-based policy measures to cushion the blow of the global crisis on the most vulnerable.”

Export diversification remains a challenge for developing countries

Export diversification in many developing countries remained low in 2021. Western Asia and Northern Africa had the least diversified basket of exports, followed by Oceania and Sub-Saharan Africa.

But the products that countries depended on varied across regions. Around three quarters of Africa’s exports consisted of primary goods (77%), while developing economies in Asia and Oceania exported manufactured goods in nearly equal proportions (76%).

Least developed countries fall short of growth targets

The world’s 46 least developed countries (LDCs) reported real GDP growth of only 2% in 2021, less than half the global average of 5.7%.

GDP growth in LDCs fell far short of the 7% annual per-capita growth target enshrined in the UN’s 2030 Agenda for Sustainable Development.