INSIGHTS
- As a result of increased demand for medical face masks during the pandemic, the world’s textile commerce climbed by 14% in 2022 compared to pre-COVID levels, according to the WTO.
- The value of the garment trade increased significantly in 2022, growing by 16% over 2019, whereas the value of the textile trade decreased in 2022 and 2021.
The World Trade Organisation (WTO) has noted that the increasing demand for medical face coverings, which largely offset the drop in demand for garments, benefited the global textile sector during the difficult year of 2020. Despite a 1 percent and a 2 percent reduction in the value of textile trade in 2022 and 2021, respectively, according to a recent research, the WTO found that worldwide textile commerce increased by 14% in 2022 compared to the year before to COVID.
According to the WTO’s report on Global Trade Outlook and Statistics, the trade in apparel had substantial growth, growing by 9% in 2022 over the previous year after a growth rate of 17% in 2021.
It is noteworthy that the volume of global apparel commerce in 2022 was 16% larger than that in 2019, showing a strong comeback to reach pre-pandemic levels.
The value of global merchandise trade increased by 12% to $25.26 trillion in 2022. This growth rate was less impressive than the astounding 27 percent rise that followed a 5.3% decrease in 2020, though. It’s significant to note that worldwide merchandise trade in 2022 increased by 32% above the pre-pandemic level seen in 2019.
According to the WTO research, the amount of global goods trade is expected to increase by 1.7% in 2023 and by 3.2% in 2024. Geopolitical tensions, food shortages, potential financial instability brought on by tightening monetary policies, and rising debt levels all represent potential downside risks to the expected growth, therefore the projection is not without risk.
