By Abbas Nazil
Global goods trade climbed to approximately $13.7 trillion in the first half of 2026, representing a 12.5 per cent increase compared with the same period in 2025, as strong demand for artificial intelligence, electric vehicles and related technologies boosted international commerce.
The latest figures were contained in a report by the United Nations Conference on Trade and Development (UNCTAD), which said global trade continued to expand despite increasing price pressures.
UNCTAD attributed part of the growth in goods trade to higher prices, while global services trade also recorded significant expansion, rising by 10.5 per cent compared with the first half of 2025.
Strong activity in East Asia and growing demand for products linked to artificial intelligence and electric mobility were among the major factors supporting the expansion in global merchandise trade.
Demand for critical minerals, semiconductors, batteries, information and communication technology products and electric cars all recorded notable increases during the period.
Critical minerals posted 38 per cent growth in the first quarter of 2026, while semiconductor trade increased by 25 per cent.
Battery trade grew by 15 per cent, ICT goods increased by 14 per cent and electric vehicle trade expanded by 11 per cent.
Developing economies in East Asia played a particularly important role in the global trade expansion, with the region recording double-digit quarterly growth in the first quarter.
UNCTAD said trade among developing economies, including South-South trade, also recorded double-digit growth over the previous 12 months when East Asian economies were included.
However, the broader performance of developing economies remained uneven, with several regions experiencing contractions during the first quarter.
When East Asia was excluded, developing economies as a group recorded an overall decline in trade during the quarter.
The contraction was largely associated with weaker imports and exports from the Middle East and South Asia.
Developed economies, meanwhile, maintained a similar pace of positive quarterly trade growth compared with the previous quarter.
Intra-regional trade expanded across most regions, although South America continued to record relatively weak growth.
Over the preceding 12 months, imports increased strongly in Africa, East Asia and Europe, while these regions also recorded robust expansion in trade between countries within their respective regions.
The latest figures highlight the growing importance of technology-driven industries in global commerce as countries and companies increase investment in artificial intelligence infrastructure, electric mobility and the supply chains supporting both sectors.
The surge in demand for electric vehicles is also increasing international trade in batteries and critical minerals, which are essential components of modern clean-energy and transportation technologies.
However, UNCTAD warned that rising trade costs remain a major challenge, particularly for developing and least developed economies.
The agency previously estimated that least developed countries were losing about 10 per cent of their exports to G20 economies because they were unable to comply with increasingly complex non-tariff measures.
UNCTAD said that although international attention has largely focused on tariffs and tariff-related tensions following trade disruptions in 2025, non-tariff measures have increasingly become the dominant source of trade costs for many economies.
The impact is particularly significant for developing countries that may lack the financial, technical and institutional capacity required to meet increasingly complex trade requirements.
UNCTAD also reported that global trade recorded a significant upswing in 2025, supported largely by strong manufacturing activity, which expanded by 11 per cent.
The continued expansion in global trade in 2026 suggests that technology-related demand is becoming an increasingly important driver of international commerce, although uneven regional performance and rising trade barriers could affect the pace of growth in the months ahead.
