How is global trade changing?

TRADE

Frances Hudson, global thematic strategist at Standard Life Investments, looks at how a slowdown in global growth will impact trade.

Between 1980 and 2007 global trade grew to account for 27% of the global economy. Global trade in industrial goods, commodities and services was worth $14trn in 2009. During this period of expansion, trade barriers were lowered, removing restrictions on the trade of goods and services. Free movement of capital also underpinned the expansion as did the tolerance of substantial trade imbalances. Global trade is changing. The magnitude and direction of flows has altered, reflecting the new world order. Among the fastest-growing trade routes are those between the commodity producers in La...