GENEVA - The United Nations Trade and Development (UNCTAD) said on Tuesday that global trade in goods and services is expected to exceed $35 trillion in 2025 for the first time.

Despite geopolitical tensions, higher costs, and uneven global demand, which slowed growth momentum, global trade continued to grow through the second half of 2025, UNCTAD said in its latest report.

The report said global trade is projected to grow about 7 percent year-on-year in 2025, adding $2.2 trillion to last year's total.

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Stronger trade volumes toward the end of this year, rather than the price increases that raised the inflation, are the main drivers of the growth, reflecting stable global demand, the report said.

East Asia registered the strongest export growth of 9 percent over the past year, with intra-regional trade surging by 10 percent. Africa and South-South trade also posted robust gains, highlighting the growing weight of emerging economies in global trade.

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The report underlined a growing trend of friendshoring and nearshoring -- a shift of trade towards politically aligned or geographically closer partners -- which is reshaping global trade patterns.

Looking ahead, UNCTAD forecast weaker growth in 2026, citing slower global activity, rising debt, higher trade costs, and persistent uncertainty.