Global goods trade surges to $13.7 trillion as AI, EV demand fuels growth

Global goods trade surged to a record $13.7 trillion in the first half of 2026, marking a 12.5% increase compared to the same period in 2025, according to a recent United Nations Conference on Trade and Development (UNCTAD) report. This growth was fueled by rising prices and increased demand for AI- and electric vehicle-related products, such as critical minerals and semiconductors.

East Asia and developing economies in the region were instrumental in driving this expansion, with the latter experiencing double-digit growth over the past year.

UNCTAD noted that global services trade grew at a slower pace of 10.5% compared to the first half of 2025. The strong performance in goods trade was also supported by robust activity in East Asia and high demand for AI- and electric vehicle-related products. However, trade growth remained uneven, with developing economies in East Asia leading the charge while other Asian subregions experienced negative quarterly growth.

The first quarter of 2026 saw a surge in import growth, particularly in Africa, East Asia, and Europe, with strong intra-regional trade as well. In May, UNCTAD raised concerns that least developed countries (LDCs) are losing approximately 10% of their exports to G20 economies due to difficulties complying with complex non-tariff measures (NTMs). Agricultural trade also expanded, buoyed by heightened activity in cereals, animal products, coffee, tea, and spices.

UNCTAD reported a 6% increase in global foreign direct investment (FDI) to $1.6 trillion in 2025 from $1.5 trillion in 2024, with high-income economies playing a significant role in this growth. Nigeria's FDI, however, declined sharply in the first quarter of 2026, falling to $135.08 million from $357.80 million in the previous quarter. This decline coincided with Nigeria attracting total capital inflows of $10.37 billion, primarily driven by portfolio investments and other short-term financial instruments.